Petrol and diesel drivers set to be ‘penalised’ by new 2022 car tax rules

Martin Lewis gives money-saving advice on VED car tax

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Sean Kemple, spokesperson for Close Brothers Motor Finance, has warned some petrol and diesel owners would be more affected based solely on the “type of vehicle they are purchasing”. Vehicle Excise Duty (VED) rates are set to rise across the board from April.

However, drivers owning models which produce a lot of air pollution are set to be the most affected.

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.co.uk, he said: “You can see the incentive from a tax perspective of road tax and benefit in kind moving towards lower emission vehicles.

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“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.

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