Friday, July 11, 2008
Road tax increases will affect nine million motorists
Around nine million motorists will pay more road tax under the recent changes to vehicle excise duty, the government has admitted.
Estimates say that VED will rise for 44 per cent of the vehicles built since 2001 but will fall for a third.
The Tories claimed Parliament had been misled over the new scheme but the government denied that, stating its aim was to reduce pollution and not raise revenues.
The official figures were revealed in Parliament by treasury minister Angela Eagle.
She said experts believed that in 2009-10 a third of cars will be better off in real terms and 55 per cent would be no worse off.
However, she added that just over 44 per cent of cars – equivalent to 8.7 million vehicles – would pay more.
It is estimated that the new tax bands will generate more than £1bn in additional revenue for the government by 2011.
Motoring groups have been highly critical of the tax changes, with the AA being particularly vociferous in its opposition.
AA president Edmund King said the figures “confirmed its worst fears” and described the VED as a “mean tax” that would hit millions of families.
DATED: 11.07.08
FEED: MT
Estimates say that VED will rise for 44 per cent of the vehicles built since 2001 but will fall for a third.
The Tories claimed Parliament had been misled over the new scheme but the government denied that, stating its aim was to reduce pollution and not raise revenues.
The official figures were revealed in Parliament by treasury minister Angela Eagle.
She said experts believed that in 2009-10 a third of cars will be better off in real terms and 55 per cent would be no worse off.
However, she added that just over 44 per cent of cars – equivalent to 8.7 million vehicles – would pay more.
It is estimated that the new tax bands will generate more than £1bn in additional revenue for the government by 2011.
Motoring groups have been highly critical of the tax changes, with the AA being particularly vociferous in its opposition.
AA president Edmund King said the figures “confirmed its worst fears” and described the VED as a “mean tax” that would hit millions of families.
DATED: 11.07.08
FEED: MT
