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Car tax hike hits motorists hard



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Published Date: 10 July 2008
MORE than nine million motorists are to be hit with a bill of up to £245 more under controversial road tax changes, the government has admitted.
The figures released by the Treasury showed that 43% of people will see their bills rise by April 2010 compared to fewer than a fifth who will be better off in real terms.

It is the first time official estimates have been disclosed of winners and losers from the changes - which ministers insist are designed to punish high-polluting cars rather than raise revenue.

The Taxpayers' Alliance has blasted the government for hitting people in the pocket at a time when the price of living is rocketing.
Research director Corin Taylor said: "Ordinary people are finding it hard enough to make ends meet with energy prices, petrol prices and food prices all rocketing and now they are faced with this.

"What the government should be doing is cutting back on its own waste and massive perks rather than hitting people at a time when they can least afford it."

Sheila Ranger, of drivers' group the RAC Foundation, said that the government had made the changes which see the number of tax bands rise from five to 13 "unnecessarily complicated."
She said: "It all relates to the amount of carbon each car emits which is obviously more for older cars, but people will probably not find what they are paying until they pay it."

The latest figures, revealed by Treasury minister Angela Eagle in response to Parliamentary questions, are likely to reignite anger over the reforms. They predict that tax will be increased on 8.7 million vehicles in 2009-10 - all in the six most-polluting bands.
Overall 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" according to the minister. Just over 44% will pay more.

By 2010-11, 9.4m face higher bills - 43% of the predicted number of vehicles on the road. Some 8.4m will lay out around the same, while 1.4m are set to benefit financially.
Experts calculate that the government will have received more than a billion in extra revenue by 2011.

The full article contains 378 words and appears in n/a newspaper.
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  • Last Updated: 10 July 2008 11:15 AM
  • Source: n/a
  • Location: Preston
 
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1

Long live speed limits,

Fylde 10/07/2008 17:26:13
2 things:
1 - CAR tax can ONLY hit motorists
2 - Only people with highly polluting cars will be hit HARD
2

NH,

14/07/2008 23:04:00
Our other option is to use the most appalling public transport system in the world. They really do have us by the short and curlies don't they. I can't wait to finish my degree and get out of this awful country for good.
3

vader,

deep space 17/07/2008 23:47:01
Car tax wont only hit big cars its the people that have c ant afford to buy new cars but depend on it for work . Guess we can all give upo the car then give up work and sign on the dole.
4

Peregrine,

Ashton 19/07/2008 08:24:46

If the intention is to hit gas guzzlers then the only fair way is to scrap road tax and put the tax on fuel therefore the people who use the most fuel will pay the most tax.

5

tonyjames,

19/07/2008 13:41:34
1 - Fuel revenue and increasing cost is a big enough hit on motorists, why hit rural people, with little or no public transport alternatives, over and over again?

Im sure there will be something in the small print that only becomes clear once the new rules are passed, such as previous tax breaks on 1.1 litre cars, it turned out that what was classed as 1.1 litre was actually 1.12 and therefore not covered. The only thing covered were lawn mowers and bubble cars.. the kind which commentator "long live speed limits" drives.
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