The latest UK budget is currently underway and the first big news for motorists concerns car tax, or Vehicle Excise Duty, to give it the official name.
Chancellor George Osborne has stated that the UK has added only 300 miles of road to its motorway network in the past 25 years, and highlighted the need for additional investment – something that will already be painfully clear to anyone who frequently uses the nation’s road network during peak periods.
The first way Osborne plans to find money to spend on new roads is by overhauling the vehicle excise duty system. This is currently based on emissions, with some owners of particularly “green” cars not having to pay any car tax at all. Under the current system, Osborne states that by 2017, 75% of new vehicles won’t be liable for the tax in their first year.
This is now set to change, with car tax being reintroduced for all new vehicles from 2017. Tax levels will still be based on emissions, but with changes made to account for “new technology,” according to The BBC.
Once the system is changed, there will be three different vehicle excise duty bands for new cars, named as “zero emission,” “standard,” and “premium.” Tax on new cars will apparently average £140 per year.
As always, published detail will reveal more once the budget announcement is over and we will provide more updates here.
Still can’t understand why they don’t get rid of car tax & add a few pence to the price of fuel. That way, no-one can avoid payment, and we all pay proportionate to our road usage. This should increase revenue, plus there is the added bonus of further savings by shutting down the collection agency, as we already have one in place for fuel tax.
We already pay enough tax on fuel, just scrap the road fund tax & use the tax from fuel to pay for the roads as it was originally meant to be.
If all new cars r goin 2 pay flkat rate WHER’S that leave eco models?r manufacturers still going 2 make em? what incentive is there now 4 buyers ecept mpg! which is misleading assure looks good in brocure but in reality u’re 4 ever having 2 change gear&use high revs so cancelliong out any benefit seems like backwards step 2 days b4 CO2 based tax!![
Still can’t understand why they don’t get rid of car tax & add a few pence to the price of fuel. That way, no-one can avoid payment, and we all pay proportionate to our road usage. This should increase revenue, plus there is the added bonus of further savings by shutting down the collection agency, as we already have one in place for fuel tax.
We already pay enough tax on fuel, just scrap the road fund tax & use the tax from fuel to pay for the roads as it was originally meant to be.
If all new cars r goin 2 pay flkat rate WHER’S that leave eco models?r manufacturers still going 2 make em? what incentive is there now 4 buyers ecept mpg! which is misleading assure looks good in brocure but in reality u’re 4 ever having 2 change gear&use high revs so cancelliong out any benefit seems like backwards step 2 days b4 CO2 based tax!![