PBR tax hike update?
December 9th, 2009 by Richard Aucock
CHANCELLOR Alistair Darling will present his important Pre-Budget Report to Parliament at 12.30pm today.
Speculation abounds as to what we can expect – but will we get another update on the showroom tax?
Remember, this is due to come into full effect in April 2010. That’s just after the next Budget previewed today. It will see the first-year road tax of the highest-polluting cars pushed up to £950.
Thereafter, owners of those cars (which emit more than 255g/km of CO2) will have to pay an annual road tax rate of £455.
Such new car buyers won’t be the only ones hit, either. Models producing between 226-255g/km will have to pay a first-year rate of £730, then £430 for the following years.
It comes on top of last April’s extended tax rates for new cars, which boosted the ‘band count’ up – the highest-rate tax band is now M. Already, this was expected to raise £465m for the Treasury. With next year’s changes, this will be pushed up to £735m.
But the changes have remained controversial, despite the year-long delay causing some to forget about it. Luxury car makers and big SUV producers in particular will be hit.
Will the Chancellor today confirm the full range of changes will still go ahead in April 2010? Or will he reveal changes to the critical plans? In a few hours, we will find out…
By Richard Aucock
Tags: Budget, Chancellor, CO2, government, pbr, tax