What is the method used to calculate the private fuel benefit?

The method used to calculate the private fuel benefit is based on a flat rate determined by CO2 emissions. This approach aligns with environmental policy goals, as it encourages the use of lower-emission vehicles. The flat rate simplifies the calculation for both individuals and tax authorities by providing a uniform measure that reflects the impact of fuel use on carbon output, rather than necessitating complex calculations based on individual fuel consumption or market prices. This system is designed to promote awareness of emissions and drive decisions towards more environmentally friendly alternatives, which can ultimately lead to reduced environmental impact.