NEW “greener” buses set to be introduced by LibertyBus will qualify for a reduced rate of Vehicle Emission Duty, the Treasury Minister has confirmed.
In a ministerial decision published this week, Deputy Elaine Millar said duty relief would be available immediately for the fleet of new buses set to be imported before the end of 2025.
LibertyBus won a new ten-year contract to operate the Island’s bus services in October 2024, with a stipulation that 22 ultra-low-emission high-capacity buses would replace older vehicles. Trials were carried out earlier this year.
In the report accompanying the decision, Deputy Millar explained that from 1 January 2026, buses would be reclassified as commercial vehicles – a change from the current definition that such a vehicle should be used to transport goods or materials, rather than passengers.
Given that the importation is likely to occur prior to the end of 2025, the Treasury Minister said she had ruled that lower rates of VED would apply with immediate effect, cutting the duty payable from £9,921 per vehicle to £834 or £1,112, depending whether a carbon rating is available.
Explaining the decision, the report noted: “This aligns with the priority in the Common Strategic Policy 2024-2026 to address the climate emergency through the implementation of the Carbon Neutral Roadmap.
“This decision also supports the Sustainable Transport Policy: Next Steps, to raise the profile of public transport.”
The move is expected to result in a reduction of approximately £200,000 in duty that would otherwise have applied.
