1 week Ago By Luke Chillingsworth
New car tax changes are a "backwards step" with Labour urged to intervene to reduce the "financial burden” on road users. Vehicle Excise Duty (VED) updates came into effect on April 1 with electric car owners among the worst hit. Those with clean zero-emission models had been exempt from VED fees up until this Spring with owners now facing hefty charges to use the roads.
Owners are seemingly concerned, with many suggesting the introduction of new fees was a bad move. A new poll from The Green Insurer found that just over one-third of British motorists (35%) believe the new fees should be scrapped. However, 42% believe the road tax charges on EVs should remain, with a further 23% unsure either way.
Paul Baxter, CEO of The Green Insurer said many individuals were worried the fees could impact affordability of owning a vehicle. He said: "There is a clear appetite amongst motorists for stronger Government action to encourage the switch to electric vehicles. "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, by looking at measures such as the removal of Insurance Premium Tax on car insurance for electric vehicles." Around two in five road users (40%) have already accepted that they will buy at least one more petrol, diesel or hybrid car before the ban on new sales in 2030. Most concerning for manufacturers is that this is double the number (19%) who say that their next car purchase will be an EV.
Meanwhile, 42% of individuals polled said they didn’t plan on buying a new car at all before the petrol and diesel ban comes into effect at the end of the decade. Electric car owners will now pay the standard £195 VED fee in line with petrol and diesel owners from the second year on the roads. However, there are fears many could be pushed into paying a lot more due to Expensive Car Supplement (ECS) rules.
This is an additional £425 fee applied between the second and sixth years of an EV's if models have a list price of over £40,000. This means total bills will rise to £625 per year for some electric car owners which could be a blow to those on a budget..
