Wednesday, May 7, 2008

5m drivers to pay more road tax

Five million drivers will pay £50 or £90 extra in road tax next year because of the Government's decision to include older family cars in new higher tax bands.

Treasury figures show that a million of those will incur at least another £130 rise the following year, meaning that their road tax will have more than doubled over two years.

By 2010, 16 million drivers will be paying more tax than they are now, contradicting the Government's claim in the March Budge that "as a result of these changes the majority of drivers will be better or no worse off".

Last week it emerged that the Government had abolished the exemption from higher road tax rates for cars that emit more than 180 g/km of CO2 and were registered between March 2001 and March 2006.

Figures released by the Treasury show that 2.4m drivers will fall into the new Band J from April 1 next year and will become liable for £260 in road tax, up from £170 to £210 this year. Another 2.4m will be in Band K and pay £300, an increase of £90. (The Times: May 3).

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