Mercedes-Benz to pass on VAT rate cut

Mercedes-Benz has confirmed that the 2.5 per cent VAT reduction will be effectuated from December 1st 2008.

In his pre-Budget report, chancellor of the exchequer Alistair Darling announced a temporary reduction in the rate of VAT from 17.5 per cent to 15 per cent – the lowest allowed by European Union law.

Following on from this, Mercedes-Benz has confirmed that VAT of 15 per cent will be charged on all of its new car prices from Monday, as well as its delivery charges, service and official parts.

In addition, the driving experience at Mercedes-Benz World at Brooklands, goods from the Boutique and food and drink from the Gullwing restaurant will also be re-priced to reflect the change.

The main significance of all this is that Mercedes-Benz smart cars now start from £6,912.44 on the road and the A 150 BlueEfficiency Classic SE 3-dr has been reduced to £14,064.14.

This means savings of £147.56 and £300.86 can be made respectively.

Some of the cost of reducing VAT will be recouped by rising duties on beer, wine and spirits, the chancellor revealed.

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