Road Tax Increase wil hit 9.4 m

  peter99co 22:24 10 Jul 2008

Winners and Losers. Which are you?
Stealth Tax or not?

click here

  anskyber 22:40 10 Jul 2008

The tax is absolutely correct in my view.

It's quite surprising at how many folk express surprise considering the CO2 differential tax policy has been around for a number of years.

We hear about poor families, frankly poor families could not afford to run a large car in CO2 terms post 2001. The truth is real poor families run much older cars if they can afford to own one at all.

The policy is correct but I think it smells of a stealth tax when it is retroactive.

I think the tax should apply to changes in car ownership rather like the Council Tax banding can change if the are home improvements which change the banding but only to the new owner.

  mrwoowoo 22:57 10 Jul 2008

The new tax bands are said to raise around an extra £2 billion for the treasury.
Now if this was truly a green issue,surely the tax burden overall would be the same as the old levels of taxation.
If,by magic,lowering taxes could save the planet,would the government do it? Not a chance in hell.
Just another excuse to take even more money from us for the government to squander.

  VNAM75 23:40 10 Jul 2008

Does anyone know what the policy is regarding the extra revenue from green taxation? Does it go into the central govt tax revenue and spent evenly on education and nhs etc? Or is it specifically set aside for projects like renewable energy, more cyle lanes etc.

It really angers me when the govt say things like without this "extra" revenue we will have to cut services. There should be enough money (because thats how much money they have had in the past before green taxes) to pay for central govt spending on public services.

Extra revenue from green taxes should be spent on environmental projects. Not on public services because the money will just get swallowed up by bureaucy and inefficiency, and not give notable improvements. Just look at the nhs.

  mrwoowoo 00:44 11 Jul 2008

Only 2% of green tax income is given back to enviroment friendly tax payers or schemes.
The rest goes on general government spending.
As i suspected,it's just a smoke screen. Just another excuse to wring even more money from us.

click here

  VNAM75 01:09 11 Jul 2008

mrwoowoow, I thought as much. Extracts below taken from your link sums it up really:

"green agenda is being hijacked simply to raise taxes2.

“There’s been a lot of talk about green tax breaks but very little action – and the last thing the environment needs is more hot air. The Government should put its money where its mouth is on this issue.”

“Taxpayers want to know that taxes raised to cut carbon emissions are recycled into either green investment or used to finance green tax breaks and are not a general tax raising mechanism.”

  Chegs ®™ 01:54 11 Jul 2008

Just out of curiosity,can someone please...

A) find out the cost of a tax disc in its early life

B) compare this cost to the wages earned back then

C)discover the rise in price from then to now if it had been linked to inflation

Mr Brown brushed off the claim and said the aim was to cut carbon emissions.

No change there then.He seems destined to shrug off his eventual voting out as our PM,if he ever gets around to actually calling an election.

  georgemac © 07:30 11 Jul 2008

My tax will increase by £10 on my car, this year I am £145 - it's rating is 157.

New road tax rates are here click here

I share the opinion of others that green taxes should be used to improve our carbon emissions in the form of grants to allow people invest in things to reduce energy consumption of their homes.

Making this tax increase retrospective is extremely unfair.

I also agree that the more emissions produced, the higher the tax should be - this is where road tax for this purpose fails miserably as it takes no account of mileage driven and therefore emissions produced. Road tax should be abolished and added to the price of fuel if the polluter must pay, a Range Rover doing 5K miles per year will produce less emissions than a Prius doing 100K miles per year.

The Prius also takes more energy to build than a normal car and also will be harder to dispose of (batteries) - this is not factored into the "green" taxation either.

We should also accept that for a family with 2 adults and 3 kids, especially when babies, a small car is just not practical, when car seats and prams have to be lugged around.

Also remember rural areas which have virtually no public transport - car is essential here and people are being taxed to the hilt.

  Quickbeam 07:35 11 Jul 2008

This is another case of the government acting surprised that so many will be adversely affected, just like the 10p tax band.

Can no one at No 11 do basic arithmetic... it's not even 'hard sums' level is it?

  birdface 07:46 11 Jul 2008

I Cant see how it will cut Carbon Emissions as folk will still have to drive their cars.So the same pollution but more tax.It does not make sense to me.

  georgemac © 07:56 11 Jul 2008

They are hoping to force people to buy smaller cars with less emissions. (As they drive around in 4.2 litre ministerial jags)

However, people now cannot sell the larger cars as nobody wants them, their value has plummeted, so people are stuck with what they already have. Also the motor trade will suffer because of this and people will lose their jobs.

Also takes no account of mileage driven and actual emissions produced, it is a tax on the potential emissions a car will produce when being driven.

If the real concern is emissions, they could use the extra tax to give larger grants for LPG conversions, or no road tax on new cars which use LPG, as LPG produces virtually no emissions and this would help people with larger cars. It would though reduce the tax take as LPG is not as heavily taxed as petrol/diesel - Oh my - is that the cynic in me taking over again?

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