Budget 2008: New road tax rates

Chancellor Alistair Darling has announced increases to Vehicle Excise Duty D (road tax) from tomorrow.

Only owners of cars in VED bands A and B those that emit less than 120g/km of carbon dioxide - won't pay any more in road tax.

VED for petrol and diesel cars
Band A (up to 100g/km CO2) no fee
Band B (101-120g/km CO2) 35
Band C (121-150g/km CO2) 120    5 increase
Band D (151-165g/km CO2) 145    5 increase
Band E (166-185g/km CO2) 170    5 increase
Band F (185g/km to 225 CO2)210    5 increase
Band G* (226g/km and above ) 385    100 increase

VED for alternatively powered cars
Band A (up to 100g/km CO2) no fee
Band B (101-120g/km CO2) 15
Band C (121-150g/km CO2) 100    5 increase
Band D (151-165g/km CO2) 125    5 increase
Band E (166-185g/km CO2) 150    5 increase
Band F (185g/km to 225 CO2)195    5 increase
Band G* (226g/km and above ) 385    100 increase

Changes to VED rates will take effect from 13 March 2008. VED rates for all cars registered before 2001 will rise by 5.

• For new cars registered from 23 March 2007