Car tax hike hits motorists hard
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
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Location:
Preston