Bad Vehicle Excise Duty Rates Set For 2010

Wednesday, 27. August 2008

After all the public outcry over the Vehicle Excise Duty (VED) reforms that were proposed by the Chancellor, a cross party committee has come out in favour of the proposals. When the Chancellor announced his plans to introduce the green banding retrospectively on not only new cars but also old cars pushing millions of used cars into higher tax bands the Tories and some Labour MPs condemned him for penalising those that could least afford the increases as well as cause owners to have thousands of pounds wiped off the value of their cars as he had just made the cars less desirable. The Environmental Audit Committee said ‘There is nothing intrinsically unfair or unusual about setting new VED rates for cars that have already been purchased’. So it is looking less likely that the Chancellor will revise his plans to introduce the changes in 2010. By Graham Hill