Although petrol duty is up 2p a litre, car tax will be frozen until March next year and tax on company cars will be linked to carbon dioxide emissions.
A spokesman for Vauxhall retailer Lance Owen, based in Addlestone, said: "We, as a motor retailer and on behalf of our local customers, welcome the slowdown in the high levels of taxation faced by the British motorist, combined with the incentives to move to more environmentally friendly vehicles."
The Government has recognised the importance of alternative fuel vehicles by offering tax incentives on fuels such as liquid petroleum gas.
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