We recently debated the changes to car tax, which come into force from April 2017. A number of you weren’t so keen on the changes…
Our resident cars expert Adrian Porter wrote in detail about the changes to Vehicle Excise Duty on 1 April.
He explained that after April 2017, all new cars will have two rates of car tax. The first year rate is based on the amount of CO2 a car emits. But from the second year, a standard rate kicks in – £140 per year, for every car, regardless of how much CO2 they emit (only zero-emission cars are exempt). Plus if the car costs over £40,000, you’ll pay an extra £310 per year for five years.
New car tax rules
‘I am flabbergasted!! It couldn’t be more complicated if it tried!!!’
In response to the new rules, Ian argued that:
‘Zero or low car tax for low emission vehicles is a sign that the government cares about the quality of the environment and the health of those living in urban conurbations. This move shows the opposite.’
However, Steve disagreed. He felt that a flat rate of tax was fair:
‘All vehicles should be taxed the same amount no matter what size engine or type as they all use the same roads!’
A tax on fuel
Dermot0 argued that owners should be taxed according to their usage:
‘If car tax is really about providing a good quality road system rather than raising money for the government’s coffers, then owners should be taxed according to use. The reasonable way to do this is to do away with road tax altogether and put the tax on fuel – that way those who burn more fuel will pay more tax and those who use the roads the most will also pay more.’
In fact, it would seem that a fair few people backed this idea of only having a tax on fuel. Fairforall explained that there were problems with this:
‘I’d love the idea of having just the tax on fuel, where the more you use the more you pay… I’m really up for it. Not fair to those who are on low salary who have to do a lot of miles to their place of work. But I can’t help thinking the extra costs would affect the goods you buy where the goods transportation costs would rise, giving excuse for all goods and food to be price hiked. But, on the other hand, would the distribution companies offset to this by not paying the VED? Or could they get special less fuel tax as a distribution business.’
What do you think about the changes to Vehicle Excise Duty? Do you think they’re fair?