The Government has launched a consultation  into reforming van road tax with plans to replace it with a system that would encourage owners to buy vehicles with lower emissions and penalise those who go for dirtier models. The planned shake up would bring van road taxation into line with cars.

With a car, the amount you pay for road tax is partially determined by its CO2 emissions – the more it pollutes, the more you pay. However, for a light commercial vehicle (LCV) such as a van or pickup, road tax is charged at a flat rate, depending on the vehicle’s age. The 2018/2019 van road tax rate is £250 for 12 months, or £137.50 for six months.

The government is looking to introduce a "graduated first year rate" system like that for cars, where the first 12 months' duty amount depends on the vehicle's emission levels in order to incentivise van drivers to purchase low emission vehicles.

“Air pollution remains a significant threat to public health and everyone must play their part tackling its causes,” Environment Secretary Michael Gove said. “Businesses have a crucial role in this. That’s why we are setting out plans to make low emission vans more affordable and asking businesses how we can help them break down the barriers to the use of lower emission machinery.”

According to treasury figures, fewer than one in every 200 vans (0.4%) bought in 2016/17 were an ultra-low emission model powered by electricity, hydrogen or a hybrid engine.

In contrast, 75% of those purchased in the same period were mainly diesel or petrol-powered emitting more than 150g/km of CO2.

"We want to help white van man go green," said exchequer secretary to the Treasury, Robert Jenrick, "we appreciate that buying a new van is a major investment for small businessmen and women and want to help make environmentally friendly choices more affordable."

It's not entirely clear which vans would be available with lower tax. It could mean all Euro 6 models, or perhaps the government is hoping to promote sales of electric and hybrid vans. Peugeot, Nissan, Citroen and Renault currently offer electric vans and there are plans for the iconic Ford Transit to get a plug-in hybrid version in 2019.

The consultation on van road tax closes on July 20, 2018. The consultation document can be viewed on the Government website.