VED raises road tax for millions of motorists

Official estimates reveal the vehicle excise duty (VED) will increase for 44%
of vehicles – up by up to £245 for the most polluting cars – but for 33% the VED
will fall.

The estimates, which were revealed for the first time in a parliamentary
answer by Treasury minister Angela Eagle, are likely to reignite the dispute
over road tax changes, which have attracted fierce criticism from Labour MPs,
BBC News reports.

The government has already had to offer concessions to its backbenchers after
criticism that poorer motorists will be hit harder by the decision to apply the
new rates to all cars registered since 2001.

Eagle said experts believe that in 2009-10, ‘a third of cars will be better
off in real terms, and in total, approximately 55% of cars will be no worse
off’. She said about 8.7 million vehicles, all in the six top-polluting bands,
would pay more.

Further reading:

Tory plan to amend Finance Bill fails

Darling faces more tax rage over backdated vehicle

the BBC News story

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