Tax proposed for gas-guzzling cars in UK

Sat Sep 15, 6:57 PM ET

LONDON - Britain's Treasury chief plans to introduce a "purchase tax" of up to $4,000 on the most polluting vehicles, The Sunday Times reported.
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Alistair Darling also plans to propose making fuel-efficient cars eligible for a $4,000 rebate, the newspaper said, citing a paper leaked ahead of the treasury chief's forthcoming pre-budget report.

The leaked document indicates that officials acknowledged the measures would be "presentationally difficult" but argue they would also "strengthen the environmental signal" of the government.

The Treasury declined to comment on the Sunday Times report, with a spokeswoman saying: "We never comment on leaks."

Prime Minister Gordon Brown's Labour Party and the opposition Conservatives and Liberal Democrats have been competing to become the party that appears most active in the battle against global warming.

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