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Car Tax Rises Leading to Confusion and Anxiety

In the wake of the latest Budget announced byhybrid  and  the  Smart  diesel.
the Chancellor of the Exchequer, there is
growing confusion about which cars will beBand B (cars which emit between 101-120g/km)
clobbered for more tax according to one ofincludes the Toyota Prius 1.5 litre
the  UK's  leading  car  insurers.petrol-electric hybrid, Smart car 0.7 litre
petrol, Citroen C2 1.4 litre diesel and the
Swinton Car Insurance is concerned that theFord  Fiesta  1.4  diesel.
latest wave of car tax rises outlined by
Gordon Brown is leaving drivers unsure aboutBand C (cars which emit between 121-150g/km)
which category their car fits into andincludes Fiat Panda 1.2 petrol, Ford Ka 1.3
whether their vehicle is one of the heaviestpetrol, VW Golf 1.9 TDI diesel, Ford Focus
polluters.1.8 TDCi diesel hatchback and the Jaguar
X-type  2.0  diesel  saloon.
The Manchester-based insurance company
believes that the vast majority of drivers ofBand D (cars which emit between 151-165g/km)
family saloon type vehicles are unsure whereincludes the VW Passat estate 1.9 TDI diesel,
their car fits on the pollution scale and howMINI One hatchback 1.6 petrol, Ford Fiesta
much  it  is  costing  them.1.6i  petrol  and the Peugeot 307 1.4 petrol.
But, more alarmingly, an increasing number ofBand E (cars which emit between 166-185g/km)
drivers are getting worried that they mayincludes the Ford Mondeo saloon 1.8i petrol,
unwittingly be falling into Vehicle ExciseVauxhall Vectra 1.8 petrol saloon, Rover 75
Duty (VED) banding brackets which are1.8 petrol and the Toyota Avensis 1.8 petrol
becoming demonised for being so-called gassaloon/hatchback.
guzzlers.
Band F (cars which emit between 186-225g/km)
Jon Kirk of Swinton Insurance said that it isincludes the Land Rover Freelander 2.0
all very well the Chancellor raising car taxdiesel, Toyota RAV4 2.0 litre petrol, Audi A4
for the heaviest polluting vehicles and1.6 petrol, BMW 5 series estate 3.0 diesel
lowering it for the most environmentallyand  the  Mazda  MX5  2.0  petrol.
friendly cars, but the simple truth is very
few people actually know which of the sevenBand G (cars which emit more than 225g/km)
A-G  bandings  their  cars  fall  into.includes the Jaguar X-type 2.0 petrol saloon
auto, Porsche 911 Carrera Coupe 3.6 litre
"It came as no surprise that the Chancellorpetrol, Renault Espace 2 litre petrol Range
put up car tax on the heaviest pollutingRover 4.4 V8 petrol auto and the BMW X5 4.8
vehicles in the latest Budget," said Jon.litre  petrol.
"And most people know that 4x4s are the worst
polluters on UK roads, but that's not theSimply by making these examples known,
whole  story."Swinton Insurance hopes to put drivers at
ease because they have a better framework to
As he points out, figures from the Society ofwork from when trying to establish how much
Motor Manufacturers and Traders revealed thatmore they are going to have to pay each year
the worst polluting band only accounted forin  car  tax.
7.5  per  cent  of all new cars sold in 2006.
"The biggest problem is that most motorist
At the other end of the scale the number ofhave little idea how much the increases
cars which fall into the first two bands onlyannounced by Gordon Brown are actually going
accounts  for  4.7  per  cent  of  cars.to cost them until they receive their car tax
renewal  notices,"  said  Jon.
"This means that nearly 90% of cars on UK
roads fall into just four of the seven"And given the Chancellor's timescales, some
bands," said Jon. "So you can see where thepeople won't feel the full effect of his
concern is arising as there seems to be aannouncement  for  another  12 to 18 months."
huge mid-ground where owners of typical
family cars can't be sure where on the scaleWhile there are losers who will have to pay
they  are  in  terms  of  carbon  emissions."more car tax because of the Chancellor's
announcement, there are also winners. Drivers
Swinton Insurance points to a list ofof cars in Band B will see their road tax
examples of cars in the different bands tobills  cut  by  Â£15  to  Â£35.
try  to  help clear up some of the confusion.
But this will only be short-lived because the
Band A (cars which emit less than 100g/km)Chancellor also said VED will rise by £5
includes the Honda Insight petrol electricfor each of the next three years.



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