Fuel Duty and Vehicle Excise Duty Hike

March 24, 2010 5:50 PM


Budget day
is, sadly, often a day when motorists see their tax burden go up and today the
government did not disappoint. As well as the 3 pence increase in fuel duty the
new rates of Vehicle Excise Duty (VED) will come into force on 1 April.


The
government say that the changes in fuel duty will encourage drivers to purchase
more fuel efficient cars, part of a wider goal of transport tax “to ensure that
the burden of taxation falls in such a way as to support the transition to a
low- carbon economy”. But it just looks like the burden will, once again, fall
on ordinary families who need to purchase a car for essential everyday
activities.


Graph

Examples of
rising VED on family cars are plentiful. For example VED for the Vauxhall
Zafira 2.0 Petrol – a functional car for a family – has increased by a whopping
£125 since 2007-08. Similarly VED on the Volvo v70 2.0 Petrol has increased by
£40 since 2007-08. In fact quintessential family cars like the Ford Focus 1.4
petrol, BMW 3 Series 320i Petrol, Subaru Outback 2.5s Petrol and the VW Passat
Saloon 1.8 TSI will all face higher VED rates.


Even small fuel
efficient cars that single people may purchase do not receive lower VED rates
in this budget. The Vauxhall Corsa 1.4 petrol, which emits 146g CO2/km will
continue to pay the £125 rate.


Some of the
cars that are going to be hit hardest by the new rates are made in Britain.
The Jaguar XF 3.0 v6 will face £425 in VED and those who purchase the car this
year will have to pay £750 in a special first year rate. Land Rover fare even
worse with Range Rover 4.4 v8 Petrol VED owners facing £435 in VED and those
who purchase the vehicle this year have to fork out a massive £950. These huge
tax hikes are coming from the government who claim to be a big champion of British
manufacturing industry.

Table



Budget day
is, sadly, often a day when motorists see their tax burden go up and today the
government did not disappoint. As well as the 3 pence increase in fuel duty the
new rates of Vehicle Excise Duty (VED) will come into force on 1 April.


The
government say that the changes in fuel duty will encourage drivers to purchase
more fuel efficient cars, part of a wider goal of transport tax “to ensure that
the burden of taxation falls in such a way as to support the transition to a
low- carbon economy”. But it just looks like the burden will, once again, fall
on ordinary families who need to purchase a car for essential everyday
activities.


Graph

Examples of
rising VED on family cars are plentiful. For example VED for the Vauxhall
Zafira 2.0 Petrol – a functional car for a family – has increased by a whopping
£125 since 2007-08. Similarly VED on the Volvo v70 2.0 Petrol has increased by
£40 since 2007-08. In fact quintessential family cars like the Ford Focus 1.4
petrol, BMW 3 Series 320i Petrol, Subaru Outback 2.5s Petrol and the VW Passat
Saloon 1.8 TSI will all face higher VED rates.


Even small fuel
efficient cars that single people may purchase do not receive lower VED rates
in this budget. The Vauxhall Corsa 1.4 petrol, which emits 146g CO2/km will
continue to pay the £125 rate.


Some of the
cars that are going to be hit hardest by the new rates are made in Britain.
The Jaguar XF 3.0 v6 will face £425 in VED and those who purchase the car this
year will have to pay £750 in a special first year rate. Land Rover fare even
worse with Range Rover 4.4 v8 Petrol VED owners facing £435 in VED and those
who purchase the vehicle this year have to fork out a massive £950. These huge
tax hikes are coming from the government who claim to be a big champion of British
manufacturing industry.

Table


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