Road Tax Proposal Could See Prices Rocket
Think-tank CentreForum has proposed replacing Vehicle Excise Duty with a system that could increase the price of high-performance cars by thousands of pounds.
Think-tank CentreForum has proposed replacing Vehicle Excise Duty with a system that could increase the price of high-performance cars by thousands of pounds. The concept would ensure that motorists no longer pay road tax annually, or six monthly, but incur one- off fees when they purchase brand new vehicles. Charges would be based on carbon emissions. As such - for every gramme of carbon vehicles emit over 94g/km - motorists would be charged £50. Equally, drivers would receive a £50 discount for every gramme below. This pivot point would be reviewed regularly in-line with the latest cars otherwise – over time – the Government would find its tax revenue falling. This proposal, CentreForum argue, would cut 2.6% off total UK carbon emissions and lower running costs for motorists.Let us consider a few examples. The Ford Fiesta Edge Econetic 1.6 TDCi DPF's carbon emission figure is 87g/km; 7g/km below the 94g/km threshold. If CentreForum's proposal becomes law, the price of this supermini would therefore fall by £350 (7x£50). The Toyota Prius T3 Hybrid 1.8 VVT-i 5dr would benefit too as its emissions are only 89g/km. This would ensure its purchase price falls by £250. However, not every vehicle would be so lucky. Prices for the Range Rover 5.0 V8 Autobiography and the BMW M5 would increase by £11,400 and £6,900 respectively, thanks to emissions of 322g/km and 232g/km. But the ultimate misery would be reserved for cars such as the Ferrari 599. Its emissions, after all, are 415g/km which would incur a £16,050 fee. Quite a lot on top of the £212,096 price tag.