1 day Ago By Luke Chillingsworth
Campaigners are demanding an update to Vehicle Excise Duty (VED) car tax fees after fears motorists are being slapped with “unfair costs”. A new Parliament petition is calling for the Expensive Car Supplement (ECS) charge to be increased “in line with inflation” instead of a flat £40,000 cut-off. Experts warned the level should be adjusted “at each budget” to prevent more and more drivers hit with extra fees.
The Expensive Car Supplement is an additional £425 charge paid on vehicles with a list price of over £40,000 between the model's second and sixth years on the road. The charge has come under the spotlight in recent weeks after it was confirmed electric car owners would be liable to pay ECS fees from April 1, 2025. The petition reads : “Adjust Luxury Car VED threshold in line with inflation.
We think this should be done at each budget. We think leaving this frozen at £40k has been another increased and unfair cost to the General Public.” Analysis showed that up to 80% of new electric cars would pay the bill due to the high upfront costs of the new technology.
It means bills for many electric car owners would rise to £620 per year once the standard VED rate had been applied in a major blow for families and those on a budget. Campaigners added: “We do not think £40,000 is a ‘Luxury Car’. £40,000 buys a very basic family car due to car price increases, and VED is already viewed by many as an unfair cost to the General Public.
“We think it is unfair to raise VED rates, but leave this frozen. Inflation rates since April 2017 means we think this should now be £53,000.” Electric cars were exempt from paying VED up until April but the discounts have now been ditched.
However, there are fears price hikes could put many motorists off making the transition with another incentive to move over to the new models scrapped. Paul Baxter, CEO of The Green Insurer warned: “We know from our own research that concerns exist over affordability, so the introduction of Vehicle Excise Duty on electric cars that came into force in April this year would seem to be a backward step. "Instead, we believe the Government should be looking to reduce the financial burden for those drivers who are opting to drive greener vehicles.
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