Campaigners call for urgent car tax changes ahead of petrol and diesel VED increase


Campaigners have demanded the Government consider major car tax updates as Vehicle Excise Duty (VED) rates are set to rise.

A new Parliament petition has asked officials to consider raising the Expensive Car Supplement (ECS) which would give owners of new vehicles extra leeway.

Motorists who purchase brand-new cars with a valuation above £40,000 must pay an extra £390 for five years after the vehicle is first registered.

However, the ECS fee will rise to £410 from April 1 as VED rates increase in line with Retail Price Index (RPI) inflation.

Electric cars are exempt from the charge until April 2025 but hybrid vehicles alongside petrol and diesel models are not.

Ben Colyer started the petition back in January and claims changes are needed as households will “already be stretching” financially.

He said: “We ask the government to raise the threshold for the additional £390 tax from cars with a list price of £40,000 to those with a list price of £45,000.

“Many households needing to buy new family-sized cars will already be stretching to pay the cost, let alone an extra £32.50 a month.

“As it stands if you purchase a new car with a retail price of £40,000 or more you will be subject to £390 a year EXTRA road tax bringing it to over £500 a year for some people.

“Considering inflation being the way that it is, many family-size cars are now into and over the £40,000 bracket for even some of the more basic models.

“Especially if you want to purchase a hybrid vehicle to ‘help the planet’ you are likely to be going over the £40,000 margin meaning an extra £32.50 per month.”

The petition will run for a further five months with the survey scheduled to come to a close on July 25, 2024. The poll needs 10,000 signatures to receive an official response from the Government.

Meanwhile, a staggering 100,000 signatures will see the question be considered for debate in Parliament.

It is expected VED fees will rise by around six percent in April with owners of the most polluting petrol and diesel owners most affected.

Owners of cars registered from 2017 will likely see a slight £10 increase but older models will be more affected.

Meanwhile, those with brand-new petrol and diesel cars exceeding 155 g/km of CO2 will pay the highest rise with costs likely to jump up by £140.

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