Porsche challenges London gas guzzler tax

By Jeremy Lovell

LONDON (Reuters) - Luxury carmaker Porsche said on Tuesday it planned to legally challenge London mayor Ken Livingstone's decision to help fight global warming by taxing gas guzzling cars driving in the city centre.

Porsche said on Tuesday the 25 pound daily charge was unfair, would not cut emissions of carbon dioxide and would deter businesses from moving to the city.

"A massive congestion charge increase is quite simply unjust," said Andy Goss, Managing Director of Porsche Cars GB.

"Thousands of car owners driving a huge range of cars will be hit by a disproportionate tax which is clear will have a very limited effect on CO2 emissions," he added. ***Have your say on the new charge here***

Livingstone rejected the move as a public relations stunt and called it an attack on Londoners.

"No one is allowed to throw their rubbish in the street and Porsche should not be allowed to impose gas guzzling polluting cars on Londoners who do not want them," he told reporters.

Announcing the plan last week Livingstone admitted that it would have little immediate effect on carbon emissions but said it would discourage people from driving polluting cars in the city centre and encourage manufacturers to make cleaner engines.

He said the new scheme would raise 30 million to 50 million pounds a year and cover most of the cost of a major cycling initiative that will include a Paris-style roadside bicycle hire scheme in the city centre.