Incoming VED changes are a ‘tax on the poor’ as drivers could see extra £130 charge

Martin Lewis gives money-saving advice on VED car tax

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From spring, drivers will pay an increased rate of Vehicle Excise Duty (VED) in line with the Government’s push for a reduction in emissions. Chancellor Rishi Sunak announced in his Autumn Budget that car tax would increase from April 1, 2022.

The car tax prices will vary in price and will be measured against how the amount of carbon dioxide emissions a vehicle produces.

The car tax changes do not apply to electric cars as they do not release any exhaust emissions.

All diesel, petrol and other fuel-powered vehicles will fall under the new VED rules and will be looking at extra costs.

For vehicles registered on or after April 1, 2017, the standard rate is currently £155, but it will rise to £165 from April 1, 2022.

From April, cars that cost more than £40,000 will be required to pay an additional £355 annually on top of the standard rate for five years.

The lowest tax band applies to vehicles which release between one and 50 grams of CO2 per kilometre.

From April these drivers will be required to pay £10 for the first 12 months.

Any vehicles which release more than 255g per km will see massive car tax charges of £2,365.

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Nicholas Lyes, RAC head of roads policy said: “With car tax rates increasing in line with inflation from April, taxing petrol and diesel vehicles will be a little more costly for drivers.

“But zero rates for electric cars might encourage people to make the switch to zero-emission driving and cut their tax and fuel bills.”

Drivers have responded to the changes with fury, with some calling it “a tax on the poor who can’t afford newer cars”.

One reader, using the nickname winterman, claimed that electric vehicle owners shouldn’t be exempt from the car tax charges.

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