The Motor Industry Association is accusing the government of failing to review the inflated charges that continue to be imposed on diesel passenger cars.
It says the government has missed the perfect opportunity to help achieve its own Kyoto target by not recognising the beneficial impact on Co2 emissions provided by small diesel-powered cars through their very low fuel consumption.
Not only has the Road User Charge been increased for this category of vehicle but it remains virtually the same as the rate for a three-tonne truck, says Perry Kerr, CEO of the Motor Industry Association.
"Road User Charges are a legitimate and sensible way of recovering the costs imposed on the roading system by heavy transport, but the concept has not been modified to reflect the times."
Kerr says when the RUC regime was imposed it was not designed to cope with lightweight diesel-powered vehicles which do not damage the roads at all.
He says it would take the simple stroke of a pen to fix this anomaly.
"But the government seems incapable of making this happen despite the fact that having diesel powered cars paying their rightful share of taxation would actually assist in the achievement of the government's own Kyoto targets."
Kerr says his association totally supports the Road Transport Forum's request that the government reviews this whole area of taxation.
"And we look forward to the day when an equitable solution can be found to the issue of how to tax lightweight diesel vehicles."
