Car Tax Chaos: Government Hints at Review as Drivers Face £140 VED Charge Shock

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By Lydia Amazouz Published on April 23, 2024 17:08
Car Tax Chaos

Hundreds of motorists have revealed that they were aware that significant changes had been made to car tax fees, which will affect practically all petrol and diesel owners.

Car Tax Hike Sparks Review Amid Electric Vehicle Concerns

Vehicle Excise Duty (VED), also known as auto tax, increased on April 1 along with Retail Price Index (RPI) inflation, with drivers paying more overall.

Charges climbed by about 6%, with individuals holding the keys to the most polluting vehicles paying the most.

However, car tax adjustments are currently “under evaluation” amid pleas to keep electric vehicles immune from price increases. The government has produced an in-depth reply to the Lords Environment and Climate Change Committee's Report 2024.

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In its response to the Lords, the government agreed with proposals calling for pay sacrifice schemes to be retained and encouraged. The reply to the report stated: “The Government has committed to keeping the transition to electric vehicles affordable for consumers. “All taxes are kept under review.”

It follows a new national newspaper survey of over 1,000 respondents, which revealed that more than a fifth completely missed the new tax laws. When asked if they were aware of the latest VED amendments implemented in April, 28.7% of those questioned said no.

Social Media Reacts to Car Tax Changes and Electric Vehicle Fees

Motorists who purchased brand-new cars producing more than 255g/km of CO2 have been struck the worst, with year one fees rising from £2,605 to £2,745 in a startling £140 increase this month. Next year, electric vehicle (EV) drivers will pay for the first time.

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The government indicated that Benefit-in-Kind (BiK) tax rates for electric vehicles will remain low until April 2028, then increase by one percent per year beginning next year. In response to the new rates, a social media user wrote: “There's no such thing as road tax in the UK. It was abolished in the 1930s.

“Roads are now paid for out of general taxation.” A second said: “Everyone knows what people meant when they say “Road Tax” which is now called Vehicle Excise Duty but to Millions it will always be Car / Road Tax.”

“And in 2025 all non polluting Electric Vehicles will have to pay the pollution tax! LOL,” while another said. “There should be some tax for using social media,” another typed.

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