Drivers oppose 'stealth' road tax

Last Modified: 25 Jul 2008
Source: PA News

More than 80% of AA members think vehicle excise duty (VED) car tax is being used as a stealth tax, a survey has revealed.

Although 70% of the 15,306 members agreed a tax system based on carbon dioxide emissions would influence their car buying, 35% did not understand the new VED system outlined in the last Budget.

AA president Edmund King said there was "confusion, mistrust and a lack of information" about the planned VED system changes.

Most of those polled were against what they saw as the "retrospective" nature of VED for cars registered between 2001-06.

Mr King on Friday wrote to Chancellor Alistair Darling asking that this retrospective aspect be scrapped.

The AA/Populus poll showed 59% disagree that all cars registered from 2001 should be subject to the new tax system, and 56% say the new system for post-2001 cars should be stopped.

Mr King said: "Over 80% of motorists now see road tax as a 'stealth tax' and we have called it a mean tax rather than a green tax. We believe that the retrospective nature of the tax increases for cars registered between 2001-6 should be scrapped before it comes a '10p tax on wheels'.

"The Government should also provide more user-friendly information to inform car buyers of changes to VED over the next two years. Our concern is that people may be buying cars today that they may not know will fall into much higher bands in 2009 and 2010."

He continued: "Our website has had a record number of hits with motorists desperately trying to find out how proposed changes to the VED system will affect them. Even though the public and indeed the AA accept that a tax system based on CO2 can influence the choice of vehicle, there is confusion, mistrust and a lack of information about the proposals.

"If the retrospective increases in tax go ahead in 2009/2010 then there is the possibility that many motorists might be driving to the polls still fuming from excessive tax increases to the cars they bought before these tax changes were proposed."

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