According to sources at the Retail Motor Industry Federation (RMIF), the Government is set to levy VAT on the annual fee, raising its price by 17.5 per cent.
The most a garage can currently charge for the test is £50.35, but adding VAT would take that figure up to £59.17. Ray Holloway, a director at the RMIF, said: “There are suspicions that the Government may be considering tampering with the statutory status of the MoT.
“If this was removed, VAT would then apply, which will bring with it a whole new revenue stream for the national coffers.” If the changes are made at the next review of test fees, the move could start to hit motorists in the pockets as soon as next April.
“We will be keeping a watchful eye on developments,” confirmed Holloway. “And the RMIF will be actively campaigning against anything that would downgrade the status of the test or threaten the viability of thousands of garages.”
The Government has already caused concern among road safety groups by considering the idea of making the annual roadworthiness check for three-year-old vehicles a biennial requirement.
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