Drivers face tax hike?

Motorists could be paying 85 per cent of their annual running costs straight to the Government within three years, if the latest tax proposals are implemented.

Auto Express Car Reviews

By Marc Mustard

06th September 2006

Two-thirds of Brits' yearly automotive outgoings, such as fuel duty and road tax, currently make their way to the Exchequer. But should the findings of the Environmental Audit Committee's report be acted on, this figure is likely to soar. The document suggests Vehicle Excise Duty should increase significantly over the next three years, with the most polluting vehicles in Band G facing bills of as much as £1,800 a year.

However, according to the Society of Motor Manufacturers and Traders (SMMT), this potential hike will also clobber the average family car driver. Someone who owns a 1.6-litre petrol Peugeot 307 currently shells out around £1,439 annually, but could face a bill of £2,606 in 2009 if these changes are introduced - a 98 per cent increase. Similarly, if you run a 1.6-litre diesel Ford Focus, then you could be paying 56 per cent more in fuel and tax.

omeone who owns a 1.6-litre petrol Peugeot 307 currently shells out around £1,439 annually, but could face a bill of £2,606 in 2009 if these changes are introduced - a 98 per cent increase
SMMT chief executive Christopher MacGowan said: "Our analysis shows changes to taxation would hit small and family cars through the double whammy of fuel costs and road tax."