MPs urge road tax rethink

27 May 2008

Road tax change could affect poor
Many to pay £245 extra in road tax
7 out of 10 affected

Owners of older petrol powered Mondeos face tax hike

Latest News

More than 30 Labour MPs are urging the Government to rethink its tax plans on the most polluting cars.

In the last Budget, Chancellor Alistair Darling announced that the highest rates of vehicle excise duty would include cars up to seven years old (those bought after March 23, 2001) and scrap a previous exemption for older cars.

The move could mean that many car owners would have to pay up to £245 extra a year in road tax. According to the Daily Telegraph, it could affect up to seven out of 10 motorists, including many of the country's worse-off drivers.

The road tax issue could become another damaging episode for the Government, which is still struggling to recover from its U-turn over compensation for 10p income tax losers.

'The increase is unfair to people who bought their cars a year ago, not knowing that the Government was going to put that road tax on,' said Labour MP Ronnie Campbell.