New Car Tax Plans for Exempt Green Cars
Low emission cars will not reap the rewards that have currently been in place according to the Shadow Treasury Minister, Rebecca Long-Bailey
Higher Road Duty
Reports suggest motorists purchasing a car with low emissions will be hit with a higher road duty under new car tax plans, only zero-emission cars will be spared the vehicle excise duty.
Current owners of exempt vehicles emitting under 100g/km of Co2 emissions will NOT have to pay the full £140 yearly rate from April 2017.
The changes in tax only apply to cars bought after April 2017. So if you bought a car now with £0 road tax, you will continue paying £0 road tax.
Proceeds to go back into roadbuilding
Removing exemptions for low emission cars will result in all the proceeds going back into road building and maintenance.
It is thought that the current system of reducing tax for greener cars isn't sustainable and is unfair, but the switch has come at a time when green cars are becoming more popular according to a recent poll.
Uncertainty for Motor Manufacturers
The new tax plans will bring uncertainty for motor manufacturers and motorists. The number of tax-exempt cars will be slashed from approximately 445 to just 13 within eighteen months, but the government insist that the changes will mean a fairer and sustainable system than what is currently in place.
Owners of the Peugeot 308 1.6 HDi diesel hatchback currently pay zero tax in year one and nothing in year two but under the new system everything changes with a sliding scale of £100 in the first year and £140 flat rate in year two.
The same applies to the popular Toyota Prius 1.8 which boasts co2 emissions of just 89g/km, currently no tax is applied in the first two years but the new system means a £100 sliding scale in year one and £140 in year two.
The top of the range Land Rover SD4 Dynamic has a current bill of £180 in the first two years, but this will rise to £500 in year one and £450 in year two working out at £590 more in road tax over the two years.