Drivers have been warned they could expect big rises in road tax rates after the Government revealed proposals for tough new measures targeting emissions.
Here’s what we know so far…
This is our guide to what is likely to be changing and how much extra drivers could be charged to tax their motors.
What is the change?
The Government has revealed private car tax (VED) and company car rates (BIK) will be based on much tougher WLTP emissions tests.
So what are WLTP emissions tests?
This test is the ‘Worldwide harmonised Light vehicles Test Procedure’ (WLTP), which replaces the current ‘New European Driving Cycle’ (NEDC) measure, which is less stringent.
Why are WLTP tests tougher?
The new WLTP test measures emissions and economy in what can be seen as a far more ‘real-world’ manner than current tests.
Will I pay more for my vehicle tax?
The WLT tests are expected to push up CO2 emissions by around 20 per cent, so unless the Government realigns current tax bands to compensate for this, it is hard to see that it would not.
However, the European Automobile Manufacturers Association has claimed the new tests should not mean drivers pay more.
So, how much extra could I pay?
Small city cars, such as a Ford Fiesta, with sub-100g/km ratings could rise through two bands from £120 to £160 for first-year road tax.
Larger cars would take a bigger hit, with the likes of the most efficient Range Rover Sport also jumping two bands – adding £700 to its first-year tax bill.
When will this come into force?
The DfT is currently consulting on the changes, but if adopted they are expected to become active from April 6, 2020.