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Transport taxes2.157 Rural fuel rebate scheme extension – The Council of the European Union has fullyapproved the government’s application to extend the rural fuel duty rebate scheme to 17 areasof the UK mainland. The scheme will be implemented on 1 April 2015 and will enable retailersin eligible areas to register for a 5 pence per litre fuel duty discount.2.158 Fuel Duty – The government will cancel the RPI inflation Fuel Duty increase of 0.54pence per litre scheduled for 1 September 2015. (8)2.159 Fuel Duty incentives for aqua methanol – As announced at Autumn Statement2014, from 1 April 2015 the government will apply a reduced rate of Fuel Duty to aquamethanol. The rate will be set at 7.90 pence per litre. The government will review the impact ofthis incentive at Autumn Statement 2016. (Finance Bill 2015)2.160 Company Car Tax rates for 2019-20 – The appropriate percentage of list pricesubject to tax will increase by 3 percentage points for cars emitting more than 75 grams ofcarbon dioxide per kilometre (gCO 2/km), to a maximum of 37%, in 2019-20. There will be a 3percentage point differential between the 0-50 and 51-75 gCO 2/km bands and between the 51-75 and 76-94 gCO 2/km bands. (Future Finance Bill) (37)2.161 Company Car Tax rates for 2017-18 and 2018-19 – As announced at Budget 2014,the appropriate percentage of list price subject to tax will increase by 2 percentage points forcars emitting more than 75 gCO 2/km, to a maximum of 37%, in both 2017-18 and 2018-19.In 2017-18 there will be a 4 percentage point differential between the 0-50 and 51-75 gCO 2/km bands and between the 51-75 and 76-94 gCO 2/km bands. In 2018-19 this differential willreduce to 3 percentage points. (Finance Bill 2015) (bb)2.162 Fuel Benefit Charge – From 6 April 2016 the Fuel Benefit Charge multiplier for bothcars and vans will increase by RPI.2.163 Van Benefit Charge – From 6 April 2016 the main Van Benefit Charge (VBC) willincrease by RPI. As announced at Budget 2014, the government will extend VBC support forzero emission vans to 5 April 2020 on a tapered basis. (Finance Bill 2015)2.164 Vehicle Excise Duty rates and bands – From 1 April 2015 Vehicle Excise Duty (VED)rates for cars, vans, motorcycles and motorcycle trade licences will increase by RPI. (Finance Bill2015)2.165 Vehicle Excise Duty classic vehicle exemption – As announced at Budget 2014,from 1 April 2016 a vehicle manufactured before 1 January 1976 will be exempt from payingVED. (Finance Bill 2015)2.166 Heavy Goods Vehicles VED and Road User Levy rates and bands – From 1 April2015 Heavy Goods Vehicles VED and Road User Levy rates will be frozen for one year. (38)2.167 Enhanced Capital Allowance for zero emission goods vehicles – As announcedat Budget 2014, the government will extend the Enhanced Capital Allowance for zero emissiongoods vehicles to 31 March 2018. (Finance Bill 2015)2.168 Air Passenger Duty child exemption – As announced at Autumn Statement 2014,the government will introduce an exemption from reduced rates of Air Passenger Duty (APD)from 1 May 2015 for children under 12 and from 1 March 2016 for children under 16. (FinanceBill 2015) (c)2.169 APD rates for 2016-17 – APD rates will increase by RPI from 1 April 2016. (Finance Bill2016)Budget 201587