Drivers warned they face 'blanket' penalty amid new car tax rates

09 April 2024 , 12:32

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At present, electric vehicle owners in the UK don't pay any tax (Image: No credit)

Drivers have been warned they could face "blanket" penalties after new car tax rates were introduced.

Vehicle Excise Duty (VED) has increased, leaving some drivers facing charges of more than £600 amid the cost of living crisis. Matthew Walters, head of consultancy and customer value at ALD Automotive|LeasePlan (UK), said: "This blanket approach to raising VED creates some unexpected penalties for EV drivers compared to their petrol and diesel counterparts.

"While zero-emission vehicles continue to be exempt from VED, there will be an increase the following year with rates set to be equalised across petrol, diesel, hybrid and electric cars, including the expensive car supplement currently £390 for vehicles priced over £40,000." He added: "This appears to be a counterproductive strategy from the Government if the aim is to encourage a transition to EVs, with all drivers facing price rises across the board."

One driver wrote online: "Just shows how much even motoring reporters are out of touch when some motorists have to pay over £600 VED and some have to pay over £730 and that is not even extra on a new car!" One disgruntled driver exclaimed: "Mine is £415 a year now. I do 1,300 miles a year in my car. 32p a mile VED. I do more miles than that on my mountain bike every year."

At present, electric vehicle owners in the UK enjoy the perk of not paying any vehicle tax, reports Birmingham Live. Additionally, they benefit from an annual VED exemption, courtesy of government policies. However, free policy is set to end in 2025 when the current exemptions are due to be phased out.

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