DVLA change sees major fixed cost increase for millions of motorists from today
manchestereveningnews.co.ukCar owners are set to feel the pinch from today (April 1), as millions of motorists with gaz-guzzling vehicles face a hike in tax - that could see some paying an extra £140 for the privilege of using their car.
The Chancellor announced in the Spring Budget that the DVLA would be increasing Vehicle Excise Duty (VED), often called road or car tax, in line with inflation.
This means that many car owners can now expect to see their tax increase, year after year. Cars built after 2017 will see the flat annual rate they pay go up by £10 from today, while the VED paid on brand new cars with high emissions is increasing by £140 to £2,745 for the vehicle's first year - but this will only apply to the most polluting new vehicles. READ MORE: Last day to 'stock up' on essential item that will be hiked in price tomorrow VED is calculated based on the vehicle's age, fuel type, and the grams of carbon it emits per kilometre, with older and low polluting cars paying nothing while brand new gas-guzzlers have to pay thousands just to get their car on the road.
Electric vehicles are currently exempt from this duty as they have been for many years, but the Chancellor has stated that they will have to pay from April 2025.
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