CAR tax changes are set to double Treasury income this year, according to latest figures. Drivers who bought a car after April 2017 now have to pay £1
CAR tax changes are set to double Treasury income this year, according to latest figures.
Drivers who bought a car after April 2017 now have to pay £140 in the second year – regardless of how polluting the car is.
Getty – Contributor The Treasury is set to cash in this year, according to latest figures
That means the government will collect £13,800 per 100 cars under the new system compared to just £7,500 per 100 cars under the old system.
Vehicle excise duty (VED) changes target lower emission cars which previously paid between £0 and £30 with the AA claiming the Treasury will be “quids in” after the ownership raid.
The changes have also caused CO2 emissions to rise by one per cent to their highest level since 2015 – and the first rise for 14 years.
Heavy-polluting new models actually pay less under the new system and experts claim penalising the lowest polluting models has prompted drivers not to switch out of older, dirtier models.
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That’s caused new car sales to plummet over the last year.
Jack Cousens, head of roads policy for the AA, said: “Drivers are also keeping hold of their vehicles for longer, with the average age of cars and vans on the road at just over eight years.
“The AA has previously warned that these changes to VED would be counter-intuitive in encouraging drivers to buy the cleanest and greenest vehicles on the market.
“Rather than providing some incentives for motorists, the changes have forced higher tax bills on those that wish to choose greener cars.