New Vehicle Tax Charges Set to Hit Motorists with Massive Costs

Portrait of Lydia Amazouz, a young woman with dark hair tied back, wearing glasses and a striped blue and white shirt, against a solid coral background.
By Lydia Amazouz Published on 11 August 2024 00:30
New Vehicle Tax Charges Set to Hit Motorists with Massive Costs
New Vehicle Tax Charges Set to Hit Motorists with Massive Costs - © en.econostrum.info

New vehicle tax changes scheduled for next spring have been heavily criticized and described as unfair by many drivers.

New Vehicle Tax Set to Affect Electric Car Owners

Starting in April 2025, electric car owners will be required to pay Vehicle Excise Duty (VED) fees for the first time, which means they will no longer be free from these charges.

According to The Express, electric car drivers will pay the basic rate the same as petrol and diesel drivers, which is currently set at £190.

However, a leading Conservative councillor has emphasized that the new fees would be a “serious and very disappointing step” for car drivers.

Glen Sanderson, the leader of Conservative-led Northumberland County Council, criticized the policy despite its introduction by the Tories back in 2022.

Mr Sanderson explained: “For many, the free road tax was the incentive to go for an electric car.

“The previous government deliberately did not change this tax to help the UK on its green promises. This is a slap in the face for climate change, and for all those who bought electric cars.”

However, electric car drivers may face even higher fees due to the ‘luxury car tax’ fee.

New Vehicle Tax to Add Extra Charges for High-Value Cars from 2025

Car owners whose vehicle is valued at over £40,000 will have to pay an additional £410 charge five years after a car's initial registration.

Since the initial cost of electric vehicles is much higher than those of combustion models, many owners may be subjected to the extra charge.

This would lead to an alarming annual tax bill of £600, even though nothing has been paid up to this point.

DVLA representatives have earlier stated the upcoming charges aim to guarantee that drivers make a “fairer tax contribution”.

GOV.UK stated: “From 1 April 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of internal combustion engine (ICE) vehicles do.

“This change will apply to both new and existing vehicles and will ensure all drivers begin to pay a fairer tax contribution.

“This new measure effectively removes band A under the graduated VED system, which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable.”

As a response to Glen’s statements, a spokesperson for The Treasury remarked: “We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”

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