Car Tax Rises Leading to Confusion and Anxiety

In the wake of the latest Budget announced by thethe Honda Insight petrol electric hybrid and the Smart
Chancellor of the Exchequer, there is growingdiesel.
confusion about which cars will be clobbered for moreBand B (cars which emit between 101-120g/km)
tax according to one of the UK's leading car insurers.includes the Toyota Prius 1.5 litre petrol-electric hybrid,
Swinton Car Insurance is concerned that the latestSmart car 0.7 litre petrol, Citroen C2 1.4 litre diesel and
wave of car tax rises outlined by Gordon Brown isthe Ford Fiesta 1.4 diesel.
leaving drivers unsure about which category their carBand C (cars which emit between 121-150g/km)
fits into and whether their vehicle is one of theincludes Fiat Panda 1.2 petrol, Ford Ka 1.3 petrol, VW
heaviest polluters.Golf 1.9 TDI diesel, Ford Focus 1.8 TDCi diesel
The Manchester-based insurance company believeshatchback and the Jaguar X-type 2.0 diesel saloon.
that the vast majority of drivers of family saloon typeBand D (cars which emit between 151-165g/km)
vehicles are unsure where their car fits on the pollutionincludes the VW Passat estate 1.9 TDI diesel, MINI One
scale and how much it is costing them.hatchback 1.6 petrol, Ford Fiesta 1.6i petrol and the
But, more alarmingly, an increasing number of driversPeugeot 307 1.4 petrol.
are getting worried that they may unwittingly be fallingBand E (cars which emit between 166-185g/km)
into Vehicle Excise Duty (VED) banding bracketsincludes the Ford Mondeo saloon 1.8i petrol, Vauxhall
which are becoming demonised for being so-calledVectra 1.8 petrol saloon, Rover 75 1.8 petrol and the
gas guzzlers.Toyota Avensis 1.8 petrol saloon/hatchback.
Jon Kirk of Swinton Insurance said that it is all very wellBand F (cars which emit between 186-225g/km)
the Chancellor raising car tax for the heaviest pollutingincludes the Land Rover Freelander 2.0 diesel, Toyota
vehicles and lowering it for the most environmentallyRAV4 2.0 litre petrol, Audi A4 1.6 petrol, BMW 5 series
friendly cars, but the simple truth is very few peopleestate 3.0 diesel and the Mazda MX5 2.0 petrol.
actually know which of the seven A-G bandings theirBand G (cars which emit more than 225g/km) includes
cars fall into.the Jaguar X-type 2.0 petrol saloon auto, Porsche 911
"It came as no surprise that the Chancellor put up carCarrera Coupe 3.6 litre petrol, Renault Espace 2 litre
tax on the heaviest polluting vehicles in the latestpetrol Range Rover 4.4 V8 petrol auto and the BMW
Budget," said Jon. "And most people know that 4x4sX5 4.8 litre petrol.
are the worst polluters on UK roads, but that's not theSimply by making these examples known, Swinton
whole story."Insurance hopes to put drivers at ease because they
As he points out, figures from the Society of Motorhave a better framework to work from when trying to
Manufacturers and Traders revealed that the worstestablish how much more they are going to have to
polluting band only accounted for 7.5 per cent of allpay each year in car tax.
new cars sold in 2006."The biggest problem is that most motorist have little
At the other end of the scale the number of carsidea how much the increases announced by Gordon
which fall into the first two bands only accounts for 4.7Brown are actually going to cost them until they
per cent of cars.receive their car tax renewal notices," said Jon.
"This means that nearly 90% of cars on UK roads fall"And given the Chancellor's timescales, some people
into just four of the seven bands," said Jon. "So youwon't feel the full effect of his announcement for
can see where the concern is arising as there seemsanother 12 to 18 months."
to be a huge mid-ground where owners of typicalWhile there are losers who will have to pay more car
family cars can't be sure where on the scale they aretax because of the Chancellor's announcement, there
in terms of carbon emissions."are also winners. Drivers of cars in Band B will see
Swinton Insurance points to a list of examples of carstheir road tax bills cut by £15 to £35.
in the different bands to try to help clear up some ofBut this will only be short-lived because the Chancellor
the confusion.also said VED will rise by £5 for each of the next
Band A (cars which emit less than 100g/km) includesthree years.