Road tax increases postponed
Above-inflation increases in the rate of emissions-related road tax for cars bought after 2001 and before 2006 look set to be delayed for at least a year.
Changes announced in the last Budget meant that from 2009, all cars that had been on the road since 2001 would face rises in Vehicle Excise Duty (VED), but it now seems likely that the u-turn in policy will be announced in next week’s Pre-Budget Report.
The VED changes would have affected almost 70 per cent of Britain’s 26 million drivers, but it was the retrospective aspect of the tax that most infuriated MPs of all parties.
A spokesperson for the Environmental Transport Association (ETA) said: “Higher polluting cars should face some form of punitive taxation, but it is vital that green taxes are seen as well thought through and fair – it’s questionable whether such a sharply-increased retrospective tax will ever be seen in that way.”
Is there an alternative to VED?
The ETA believes that the burgeoning costs of motoring make a new case for national road user charging, for not only would such a system cut congestion and thereby help reduce emissions, it would save motorists money as there would no longer be any need for fuel duty or vehicle excise duty; most roads, most of the time, have no congestion, so many people would pay less.
Road tax rates 2009
To find out how much road tax you will pay next year, check your car’s CO2 emissions on your V5c vehicle registration certificate. You will find the information on the second page in section 4. Once you have this information find out how much you will pay next year here
Related articles:
Backdating VED is a bad policy
New car tax: How much will you pay in 2009?
What is road-user charging and why is it important?
What is the ETA?
The ETA is a not-for-profit organisation providing motorists and cyclists with green breakdown cover and green insurance products. The ETA exists in order to campaign for sustainable transport – when you buy our services you help fund our charitable work.
