mattant
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Registered: 19th Jun 10
Location: South Yorkshire
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It was only a matter of time, the government says they are losing too much money because most new cars are in low tax bands
quote:
Reforms to Vehicle Excise Duty are currently under discussion, the Treasury has said.
It follows reports that increased fuel efficiency could lead to a fall in revenue from the tax, which is levied according to how much CO2 a car emits.
The Treasury said no proposals had yet been made and it would listen to the views of motoring groups before taking any decisions.
Labour said the government was planning a "stealth tax hike" on motorists.
The Daily Telegraph reported one option under consideration by ministers was a one-off up-front charge on new vehicles when they were sold, instead of charging VED annually.
Under the current system, cars fall into 13 payment bands depending on their level of carbon emissions, with more polluting vehicles taxed more heavily.
The duty is paid annually, but a higher rate is payable in the first 12 months of the vehicle's registration.
Cars with the lowest levels of carbon emissions, such as hybrid cars, are exempt from paying the duty.
European regulations aimed at reducing carbon emissions from new cars and improvements in technology are expected to lead to a higher proportion of cars qualifying for the lower bands of VED in the future.
The latest forecasts from the Office for Budget Responsibility show that while tax receipts for VED are expected to remain broadly flat at about £6bn a year over the next five years, they could fall as a percentage of GDP from 0.4% in 2010-11 to 0.1% by 2029-30.
"Beyond 2030, with unchanged emissions bands, VED would fall off to very low levels as older cars with emissions levels above the exempt level dropped out of the car stock," the OBR said.
But for Labour John Woodcock, shadow transport minister, said the government should "come clean" on whether it plans to raise the duty.
"Instead of tackling the soaring price of fuel, the chancellor has hidden plans for another stealth tax hike on motorists in the small print of the budget.
"The Conservative-led government must come clean about how much extra they plan to charge hard-pressed motorists by whacking up the rate of vehicle excise duty", he said.
http://www.bbc.co.uk/news/uk-politics-18277311
[Edited on 31-05-2012 by mattant]
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ed
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Registered: 10th Sep 03
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This has always been the deal. Free road tax for low emissions vehicles is a temporary thing, much like the scrappage deal, to get people out of shitters and into newer tech.
[Edited on 31-05-2012 by ed]
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djgritt
Premium Member
Registered: 1st Nov 07
Location: Dorset Drives: Focus ST / Hyundai i20N
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Should have just solely kept the old system and bumped the prices up on that...
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random dav
Premium Member
Registered: 7th Jan 04
Location: NSW
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No suprise there.
Also new cars should be taxed accordingly as to how much co2, etc is produced in their production. No point in just taxing what it produces when made.
The whole car tax situation is a joke tbh.
WRLFC !
Project cars
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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quote:
Originally posted by mattant
with more polluting vehicles taxed more heavily.
Clueless twats 
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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quote:
Originally posted by random dav
new cars should be taxed accordingly as to how much co2, etc is produced in their production.
Good point Dave, that would fuck up a few people who are not doing as well as they think.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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i never understood people who spend thousands on new low polluting cars just to get out of paying VED.
my nan goes on about it like it's a lot of money. when compared to the cars value, it's fuck all.
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Sunz
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Registered: 12th Jan 07
Location: SE England
User status: Offline
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quote:
Originally posted by random dav
No suprise there.
Also new cars should be taxed accordingly as to how much co2, etc is produced in their production. No point in just taxing what it produces when made.
The whole car tax situation is a joke tbh.
I agree that the cost to the environment in the production of the vehicle should be a factor that's apart of vehicle tax.
I have a problem with charging people a set price of tax based upon their vehicles g/km, as the owner could do 5000 miles a year and pay £200 for 12 months tax where as a car with a lower g/km might pay £100 for a years tax and do 24,000 miles per year.
Sadly I think it will only get worse, population is ever growing, more cars on the roads means more pollution, all they seem to do is say it's okay to drive something that's bad for the environment as long as we're making some money from it, this is how the Uk system seems to me, is probably the same everywhere.
Motorbikes are the future ! 
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Rickavo
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Registered: 2nd Jul 09
Location: Manchester
User status: Offline
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quote:
Originally posted by Sunz
Motorbikes are the future !
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