Government Accused Of Car Tax Con
The government has admitted that the new higher car tax band for heavily polluting cars will apply to vehicles registered as far back as 2001. That was something that the Chancellor failed to make clear in his March budget speech.
Older Cars Will Be Subject To Higher Tax
Updated:11:32, Wednesday April 30, 2008
The Government has been accused of penalising "hard-pressed" families after it confirmed owners of older cars would be hit with higher car tax.
Cars like the 2002 Renault Espace will be subject to higher taxThe Treasury has admitted it failed to make clear that cars up to seven years old would be subject to changes made in the 2008 Budget.
The Budget report says: "From 2009, VED (Vehicle Excise Duty) will be restructured with new bands, based on carbon dioxide so that people gain financially by choosing the car with the best environmental performance in a given group.
"Six new VED bands from 2009-10 - including a new top band (band M) for the most polluting cars that emit more than 255g CO2 per km."
"MOTORIST BASHING TAX GRAB"
THE FULL STORY
Ben Webster
Transport Correspondent
Tens of thousands of families will have to pay up to £245 extra a year under new road tax rules after a covert government decision to include cars up to seven years old.
The Treasury admitted to The Times last night that it was quietly abolishing the exemption for older cars from the highest rates of vehicle excise duty. This means that owners of larger cars bought since March 2001 will find that their road tax will rise steeply from next April.
The increases are being introduced in two stages, with many owners who are now paying £210 a year being charged £300 in 2009 and up to £455 in 2010.
The new road tax was announced in last month's Budget but its impact is only now becoming clear.
Owners of models of the Renault Espace, Vauxhall Zafira, VW Sharan, Ford Galaxy, Citroen C8, Volvo XC9O and others that emit more than 225g of carbon dioxide per kilometre, will pay £430 in 2010 compared with £210 this year. Owners of medium-sized cars that emit more than 180g/km, including some Ford Mondeos, will find taxes rising by up to £100.
Those who try to sell their cars will find that the value has fallen sharply because of increases in fuel prices and road tax. The AA said that many people were falling into a "negative equity" trap, with their cars worth thousands of pounds less than their outstanding loans.
Motoring groups said that it was unfair to penalise families who bought their cars several years ago, when people knew less about the consequences of CO2 emissions.
The Government began varying road tax rates in 2001 but did not introduce the band G rate for cars that emit more than 225g/kmuntil March 2006. In the Budget that year, Gordon Brown, then the Chancellor, said that no car registered before March 23, 2006, would have to pay the band G rate.
In last month's Budget, Alistair Darling announced a new system of 13 bands, from A to M, coming into force next April and a showroom tax of up to £950 starting in April 2010. The Chancellor said that the changes. would raise an additional £1.2 billion up to March 20ll but failed to make clear that a significant portion of this would be paid by owners of older cars, who would lose their exemption.
Paul Watters, head of roads policy at the AA, said: "The Government presented the changes as means of influencing people's purchasing decisions, but it turns out that they are also penalising hardpressed families who have been running the same car for many years.
"This will hit people who are already struggling to pay higher fuel bills and who bought their cars in good faith, not realising that the Government would move the goalposts."
Information about the new rates is buried in an appendix to the Budget report and is not mentioned on the DVLA's website page on vehicle tax.
Nigel Humphries, of the Association of British Drivers, said: "This impacts hardest on poorer families who need larger cars. Such drivers may not even realise the huge rises on older" Mondeos, Lagunas,Vectras and Galaxies even with middle-range engines until VED renewal time. Even some smaller cars, such as Astras and Focuses, are hit.
"The arrogance of Darling is astonishing. When questioned in a radio interview following the Budget, he suggested that those affected needn't pay higher VED as they could buy new cars. How are they supposed to do that when food, council tax and mortgages are all up way above inflation?"
A Treasury spokesman said: "The Budget 2008 reforms aim to ensure that there are appropriate and consistent VED signals across the system the more polluting the vehicle, the more VED it will pay to encourage the purchase of fuel-efficient vehicles.
"Cars emitting over 226g CO/km but bought before Budget 06 wiIl move into Band K in 2009/10 and will continue to benefit from a reduced rate, and only in 2010-11 will these cars be placed into the band that corresponds to the car's CO2 emissions."
Transport Correspondent
Tens of thousands of families will have to pay up to £245 extra a year under new road tax rules after a covert government decision to include cars up to seven years old.
The Treasury admitted to The Times last night that it was quietly abolishing the exemption for older cars from the highest rates of vehicle excise duty. This means that owners of larger cars bought since March 2001 will find that their road tax will rise steeply from next April.
The increases are being introduced in two stages, with many owners who are now paying £210 a year being charged £300 in 2009 and up to £455 in 2010.
The new road tax was announced in last month's Budget but its impact is only now becoming clear.
Owners of models of the Renault Espace, Vauxhall Zafira, VW Sharan, Ford Galaxy, Citroen C8, Volvo XC9O and others that emit more than 225g of carbon dioxide per kilometre, will pay £430 in 2010 compared with £210 this year. Owners of medium-sized cars that emit more than 180g/km, including some Ford Mondeos, will find taxes rising by up to £100.
Those who try to sell their cars will find that the value has fallen sharply because of increases in fuel prices and road tax. The AA said that many people were falling into a "negative equity" trap, with their cars worth thousands of pounds less than their outstanding loans.
Motoring groups said that it was unfair to penalise families who bought their cars several years ago, when people knew less about the consequences of CO2 emissions.
The Government began varying road tax rates in 2001 but did not introduce the band G rate for cars that emit more than 225g/kmuntil March 2006. In the Budget that year, Gordon Brown, then the Chancellor, said that no car registered before March 23, 2006, would have to pay the band G rate.
In last month's Budget, Alistair Darling announced a new system of 13 bands, from A to M, coming into force next April and a showroom tax of up to £950 starting in April 2010. The Chancellor said that the changes. would raise an additional £1.2 billion up to March 20ll but failed to make clear that a significant portion of this would be paid by owners of older cars, who would lose their exemption.
Paul Watters, head of roads policy at the AA, said: "The Government presented the changes as means of influencing people's purchasing decisions, but it turns out that they are also penalising hardpressed families who have been running the same car for many years.
"This will hit people who are already struggling to pay higher fuel bills and who bought their cars in good faith, not realising that the Government would move the goalposts."
Information about the new rates is buried in an appendix to the Budget report and is not mentioned on the DVLA's website page on vehicle tax.
Nigel Humphries, of the Association of British Drivers, said: "This impacts hardest on poorer families who need larger cars. Such drivers may not even realise the huge rises on older" Mondeos, Lagunas,Vectras and Galaxies even with middle-range engines until VED renewal time. Even some smaller cars, such as Astras and Focuses, are hit.
"The arrogance of Darling is astonishing. When questioned in a radio interview following the Budget, he suggested that those affected needn't pay higher VED as they could buy new cars. How are they supposed to do that when food, council tax and mortgages are all up way above inflation?"
A Treasury spokesman said: "The Budget 2008 reforms aim to ensure that there are appropriate and consistent VED signals across the system the more polluting the vehicle, the more VED it will pay to encourage the purchase of fuel-efficient vehicles.
"Cars emitting over 226g CO/km but bought before Budget 06 wiIl move into Band K in 2009/10 and will continue to benefit from a reduced rate, and only in 2010-11 will these cars be placed into the band that corresponds to the car's CO2 emissions."
re this 308 BB
Dave Ireland has already sent letters to his MP re the issue.
The forums committee and the magazine editor are treating this as a matter of urgency.
Items will appear in the JEC magazine with possible reference to any action that needs to be taken.
Dave Ireland will put this forums opinions forward if and when we receive comments.
A sensible debate would seem appropriate within the BB your comments please.........
The forums committee and the magazine editor are treating this as a matter of urgency.
Items will appear in the JEC magazine with possible reference to any action that needs to be taken.
Dave Ireland will put this forums opinions forward if and when we receive comments.
A sensible debate would seem appropriate within the BB your comments please.........
Hello All
If we wish to protest about this issue it seems now is the time !!
The Government has had a good kicking by the electorate and Labour backbenchers are decidedly "twitchy".
Most MPs have E-mail addresses these days and a suitably worded protest letter to your constituency MP with a copy to the Labour Party "Chairperson" Hazel Blears (blearsh@parliament.uk) seems to me worth a try.
"For Tyranny to prevail all that is needed is for good men to stay silent"
or something like that.
If we wish to protest about this issue it seems now is the time !!
The Government has had a good kicking by the electorate and Labour backbenchers are decidedly "twitchy".
Most MPs have E-mail addresses these days and a suitably worded protest letter to your constituency MP with a copy to the Labour Party "Chairperson" Hazel Blears (blearsh@parliament.uk) seems to me worth a try.
"For Tyranny to prevail all that is needed is for good men to stay silent"
or something like that.
A big turnaround ???
This morning a statement in the news channels re the VED / ROAD FUND licence hinted that a turnaround could be on the cards....
27 May 2008 05:38pm
Ministers hinted at another Government tax climbdown amid stark warnings that Labour is alienating the ordinary voter on a range of issues.
Senior Cabinet colleagues insisted the Prime Minister is "listening" to anger over a planned increase in road tax on gas guzzling cars expected to hit nearly 18 million people.
The row has again put Mr Brown under pressure from Labour MPs who forced him this month to give ground over the abolition of the 10p rate of income tax.
They have given warning that public fury over changes to vehicle excise duty (VED) could reach the same proportions as the 10p tax debacle.
One complained that the issue was only one of many leaving traditional Labour supporters disaffected with the Government.
"I'm getting complaints from our core Labour vote that they feel the Labour Government is just hitting them left, right and centre," Labour's Bolton South East MP Brian Iddon warned.
"They are heavily bruised at the moment."
27 May 2008 05:38pm
Ministers hinted at another Government tax climbdown amid stark warnings that Labour is alienating the ordinary voter on a range of issues.
Senior Cabinet colleagues insisted the Prime Minister is "listening" to anger over a planned increase in road tax on gas guzzling cars expected to hit nearly 18 million people.
The row has again put Mr Brown under pressure from Labour MPs who forced him this month to give ground over the abolition of the 10p rate of income tax.
They have given warning that public fury over changes to vehicle excise duty (VED) could reach the same proportions as the 10p tax debacle.
One complained that the issue was only one of many leaving traditional Labour supporters disaffected with the Government.
"I'm getting complaints from our core Labour vote that they feel the Labour Government is just hitting them left, right and centre," Labour's Bolton South East MP Brian Iddon warned.
"They are heavily bruised at the moment."
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paulbarrie
- Posts:32
- Joined:Mon Sep 03, 2007 2:14 pm
- Location:Kenton, Middx.
Surely the fairest way would be to scrap Road Tax completely and put a few pence on the price of fuel. I know it's expensive already but this way if you do a lot of miles and your car drinks fuel, you pay. If you do few miles or drive a sinclair C5 you don't.
They will have to come up with a way of helping road hauliers and also another way of checking for valid insurance.
Petrol stations may also have to introduce the system from the states where you pay for fuel before filling up. That will stop the runners.
They will have to come up with a way of helping road hauliers and also another way of checking for valid insurance.
Petrol stations may also have to introduce the system from the states where you pay for fuel before filling up. That will stop the runners.
re gov protest
Paul your thinking is more widely discussed than is published, this is probably why nothing is done about any of the proposals we hear about.
I have personal thoughts on the fuel ,road tax, speed cameras, and general costs the government are putting at the door of motorists.
But that is a general debate for other places than our forum, your post seems to have a more sensible ring to it for all motorists....but how to get it across to the powers that be is another thing........Joe
I have personal thoughts on the fuel ,road tax, speed cameras, and general costs the government are putting at the door of motorists.
But that is a general debate for other places than our forum, your post seems to have a more sensible ring to it for all motorists....but how to get it across to the powers that be is another thing........Joe
The protests appear to have worked !!
Many members may be aware by now that the original proposals to apply top rate road tax (VED) rates of up to £435 a year to our cars registered after March 2001 will not now happen.
The November pre-budget report said a new VED band K will be introduced (now in force) which will include cars with CO2 emissions over 225g/km (nearly all Jaguars) registered between 1st March 2001 and 23 March 2006.
The rate for our cars for 2009 is £215,for 2010 it goes up to £245.
See the DVLA website for details:-
http://www.direct.gov.uk/en/Motoring/Ow ... G_10012524
Many members may be aware by now that the original proposals to apply top rate road tax (VED) rates of up to £435 a year to our cars registered after March 2001 will not now happen.
The November pre-budget report said a new VED band K will be introduced (now in force) which will include cars with CO2 emissions over 225g/km (nearly all Jaguars) registered between 1st March 2001 and 23 March 2006.
The rate for our cars for 2009 is £215,for 2010 it goes up to £245.
See the DVLA website for details:-
http://www.direct.gov.uk/en/Motoring/Ow ... G_10012524
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