Some drivers could pay thousand of pounds in 2022
An urgent warning has been issued to all UK drivers who use diesel or petrol cars.
The Vehicle Excise Duty (VED) rates are set to rise on April 11 for all drivers.
Close Brothers Motor Finance spokesperson Sean Kemple said petrol and diesel users would be more affected based on the “type of vehicle they were purchasing”.
Drivers whose cars produce high amounts of air pollution are set to be the worst affected by the new rules.
VED rates for vehicles that produce over 255 g/km of CO2 pollution will rise to £2,365.
This will be a massive £120 increase from the current 2021 rate.
Meanwhile, drivers of cars producing 226 to 255 g/km will see a £105 rise, with fees for cars producing 191 to 225 g/km increasing by £75.
Price rises will be seen across all vehicles except for those producing less than 75 g/km of CO2.
Mr Kemple has also warned of the “challenge” ahead as drivers look to switch to electric cars.
He said the Government would need to “offset” tax revenues as more drivers started to ditch their existing petrol and diesel cars.
Speaking to Express, he said: “You can see the incentive from a tax perspective of road tax and benefit in kind moving towards lower emission vehicles.
“That’s better for everyone involved so it’s a win-win situation.
“The challenge then is, how does the Government then offset those tax receipts in terms of what they would have been getting from petrol and diesel vehicles.
“What you then see is the consumers of petrol and diesel, in their view, I suppose being penalised by the type of vehicle they are purchasing.”
The Treasury has previously estimated they will need to fill a £40billion black hole as a result of the loss of VED and fuel duty rates.
The VED increase is set to come into effect on April 1, 2022.
The changes were first announced during last year’s Autumn Budget.
HM Revenue and Customs said the rise is to ensure VED rates are uprated with the Retail Prices Index (RPI).
They said increasing VED rates in 2022 will ensure rates are “maintained in real terms”.
They said the changes will ensure motorists “make a fair contribution to the public finances”.
They added: “This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence.
Extracted in full from: Urgent warning to UK petrol or diesel car drivers as new tax rules could see motorists pay over £2k – MyLondon