New car tax rules will see every petrol and diesel…

new-car-tax-rules-will-see-every-petrol-and-diesel…

New car tax rules will see every petrol and diesel…

New car tax rules will see every petrol and diesel driver paying more
2022-01-17 17:12:00
Every driver in the UK with a petrol or diesel running car has been warned they will be penalised from April this year. Vehicle Excise Duty (VED) rates are set to rise across the board from April 11. Sean Kemple, spokesperson for Close Brothers Motor Finance, has warned some petrol and diesel owners would be more affected based solely on the “type of vehicle they are purchasing”, the Express reported. Click here for more travel and traffic news However, it is the drivers who own car models which produce a lot of air pollution that would be the most affected. VED rates for vehicles that produce over 255 g/km of CO2 pollution will rise to £2,365. This will be a significant increase of £120 from the current 2021 rate. Meanwhile, drivers of cars producing 226 to 255 g/km will see a £105 rise, with fees for cars producing 191 to 225 g/km increasing by £75. VED rates will be rising from April 2022 (Image: Hull Live) Price rises will be seen across all vehicles except for those producing less than 75 g/km of CO2. Mr Kemple has also warned of the “challenge” ahead as drivers look to switch to electric cars. He said the Government would need to “offset” tax revenues as more drivers started to ditch their existing petrol and diesel cars. Speaking to Express, he said: “You can see the incentive from a tax perspective of road tax and benefit in kind moving towards lower emission vehicles. “That's better for everyone involved so it's a win-win situation. “The challenge then is, how does the Government then offset those tax receipts in terms of what they would have been getting from petrol and diesel vehicles. “What you then see is the consumers of petrol and diesel, in their view, I suppose being penalised by the type of vehicle they are purchasing.” The Treasury has previously estimated they will need to fill a £40 billion black hole as a result of the loss of VED and fuel duty rates. The VED increase is set to come into effect on April 1, 2022. The changes were first announced during last year’s Autumn Budget. HM Revenue and Customs said the rise is to ensure VED rates are uprated with the Retail Prices Index (RPI). They said increasing VED rates in 2022 will ensure rates are “maintained in real terms”. They said the changes will ensure motorists “make a fair contribution to the public finances”. They added: “This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence. “The increase in VED rates is in line with RPI meaning rates will remain unchanged in real terms for vehicle owners.” To sign up for the Hull Live newsletter, click here. Video LoadingVideo UnavailableClick to playTap to playThe video will auto-play soon8CancelPlay now

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