COMPANIES have turned up their noses at the prospect of changes in tax on company car use, according to business advisers KPMG.

An overhaul of the company car tax regime is expected in next month's Government's Transport White Paper, switching the tax from business to private mileage.

Companies were not keen on ''policing'' the system. They also agreed that applying the same

system to mileage rates according to cost and engine size of car would also be too complicated.

The most favoured option was keeping the present system but with no discount for business mileage, it was suggested that this could be linked to a reduction in the scale charge.

Leslie Ferrar, employee issues tax partner for KPMG, said: ''It appears from our research that companies would prefer fine-tuning the current system rather than hammering private mileage which hits those outside the cities.''