Remove tax advantages for corporate parking

Currently those who park in public car parks pay a charge for their use. A full time worker in town may well be paying over £1,500 per year in parking charges. Corporate parking spaces, on the other hand, are not taxed as a benefit in kind. A worker driving into town to park in corporate parking space causes the same environmental damage, congestion, pressure on health care etc. And yet those "externalities" are not priced in the same way as they are for a worker using a public parking space. This inconsistency needs to be redressed. Either corporate spaces should be taxed as a benefit in kind, or employers should pay a levy for each space they provide. However this is achieved, the net effect needs to be that a person using a corporate parking space incurs similar costs to a person using public parking. We could create some limited exceptions for essential workers and those who work outside the hours of operation for public transport. 

Why the contribution is important

By exemping corporate parking from tax, the system is incentivising the wrong behaviours. If we fix this, all workers will face similar incentives to use alternative trasport for getting to work, whether it is walking, cycling, bus, car share etc. 

by Dp20 on February 17, 2021 at 12:09PM

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