Showroom tax starts
April 2nd, 2010 by Richard Aucock
NEW car buyers will be hit today by big changes to the vehicle excise duty system that could cost them.
The first-year rates of road tax come into force – which will mean a £545 RISE for the highest-emitting models.
Yes, cars emitting more than 255g/km CO2 will be stung for a first-year tax bill of £950!
On the flipside, cars producing less than 130g/km, will get FREE first year road tax. For cars producing between 121-130g/km CO2, this equals an effective reduction of £120.
As more than 7 percent of the new car market falls into this category, it’s a big saving, says the Government.
Even so, the SMMT is not happy. Chief executive Paul Everitt said ‘we are disappointed that Government didn’t take the opportunity in last week’s Budget to defer the introduction of the first year rate or the increase in standard VED rates.
‘Environmental taxes need to be clear and consistent so that motorists can be confident that they will reap the benefits from their decision.’
As for the technicalities, motorists will pay the first year rate of VED when buying their car, reverting to the new standard rate for every subsequent year. This means yet another change and another added layer of confusion for the road fund licence system.
New car dealers, what do you expect the reaction to new car tax rates will be in your car showrooms?
Tags: CO2, government, new car, shworoom tax, ved