Parking tax plan anger

Mar 10 2009 by Iain Laing, The Journal

A SMALL business group has voiced its anger at Government plans which may mean workers at SMEs being taxed for using their own car parking spaces.

Under the Transport Act 2000, local authorities have the power to introduce Workplace Parking Levy (WPL) schemes, allowing them to charge firms which provide employees with private parking.

The Department for Transport is seeking feedback on how measures in the Act should be implemented. The Forum of Private Business (FPB) is petitioning the Government to scrap the legislation altogether, believing it is unfair, discriminates against small-business employers and will force many struggling firms to close.

FPB chief executive Phil Orford said: “The tax burden is already a major problem for small businesses which are struggling to survive the recession. The Government should be working hard to support businesses and relieve this burden, not add to it.

“Often, local councils readily place short-term revenue-raising above facilitating real economic growth. This stealth tax on parking smacks of more of the same.”

In its response to the Government’s consultation, the FPB outlined its opposition to the legislation, arguing that the WPL will have a damaging and disproportionate effect on small businesses, including those with more than 20 employees.