New vehicle excise duty (VED) changes will become effective from April 1, with a heavily revised charging structure.
Research by Honest John has revealed that the new tax rules will add £500 to the running cost of Britain’s most economical and environmentally friendly cars, whilst benefiting the heavy polluters.
This is due to the new flat rate charge of £140 that will be introduced and applicable to all cars after the first year of ownership.
Until now, the government has offered zero VED to entice car buyers to purchase eco-friendly vehicles.
Nowadays, however 74 per cent of new cars emit less than 130g/km of CO2, which has caused the government to make a U-turn on its policy and introduce rules to force buyers of new, efficient cars to pay more.
Under the current tax rules, vehicles that emit sub-99g/km qualify for zero VED for the first year…