The UK boss of BMW has broken ranks with other business leaders and praised Alistair Darling for changing the capital gains tax rules.
Jim O'Donnell, managing director of BMW (UK), said the Chancellor had simplified a "serpentine" tax regime.
Mr Darling's announcement during the recent pre-Budget report that the CGT taper, which reduces tax on the disposal of business assets to 10 per cent, is to be scrapped next April and replaced by a flat rate of 18 per cent, angered business leaders.
It has led to two prominent West Midland businessmen and investors, Tim Watts, of Pertemps, and David Grove, of Hill & Smith, to sell millions of pounds of assets and pull out of planned investments to avoid the higher rate.
But in a speech in London, Mr O'Donnell said: "Unlike many business leaders I would like to congratulate Alistair Darling on the capital gains tax changes.
"Yes, it would have been better if had been phased in over three years.
"Yes, it is a tax increase of 80 per cent, but an 18 per cent marginal rate is still very low by the measure of almost any tax regime in the world.
"The big advantage is that Darling has simplified taxation policy and that is what is most needed in our serpentine regime."
Mr O'Donnell went on to urge the Chancellor to "keep it up and apply the same philosophy to vehicle taxation".
He said a "determination to tax larger cars out of existence" threatens smaller manufacturers - specifically Jaguar and Land Rover.
"Do our political leaders really want to kill off major contributors to the UK economy and major employers?
"Or is their forward planning confined to current electoral terms rather than the long term?
"I don't know the answer, but I do know that poor management, unrealistic unions and the apathy of successive governments towards the industry has resulted in the demise of a once strong indigenous industry.
"The UK needs both Jaguar and Land Rover as strong competitors in the global marketplace. It's too easy to vilify a car that emits, say, over 225 g/km.
"Relatively few people drive them and they are an easy, some might say a popular, political target.
"Nevertheless, I believe that our political leaders need to give more than a nanosecond's consideration to the positive characteristics of top end cars."
With the UK leading the EU on cutting Co2 emissions, Mr O'Donnell also called on the Government to "get a grip on tax anarchy" caused by a "burgeoning class of minor council officials that are using - or abusing - their positions of power to create their own tax penalties on motorists".