Car tax hikes coming in April that 75% of Brits are unaware of

This April, significant car tax hikes are set to take effect, yet a surprising 75% of Brits remain unaware of the impending changes that could impact their wallets.

As April approaches, a significant change in the UK’s Vehicle Excise Duty (VED) is set to take effect, yet a staggering 75% of Brits are unaware of these impending tax hikes. According to the Independent, the new regulations will see a sharp increase in VED rates for new petrol, diesel, and hybrid vehicles, with the aim of encouraging drivers to switch to electric vehicles (EVs).

The New VED Rates

Starting April 1, 2025, the first-year VED rates for new petrol and diesel cars will double, says the Independent. For instance, cars emitting more than 255g/km of CO2 will see their first-year tax rise from £2,745 to a whopping £5,490. Even electric vehicles, which were previously exempt from VED, will now have to pay £10 in their first year and £195 annually thereafter.

Impact on Drivers

The Independent says the changes are expected to raise £400 million per annum for the Treasury. However, they also mean higher costs for drivers, especially those purchasing new, high-emission vehicles. The new rates are designed to widen the gap between the costs of owning petrol/diesel cars and EVs, incentivizing the latter.

Industry Reactions

The car industry has expressed concerns about the impact of these tax hikes. Kevin Griffin, the UK head of Korean car brand KGM, warned that the increased VED rates could negatively affect driver demand for new cars. He urged the government to support the car sector to avoid a decline in new vehicle sales.

Public Awareness

Despite the significant financial implications, a poll by WeBuyAnyCar revealed that up to 75% of drivers are unaware of the upcoming changes. This lack of awareness could lead to unexpected costs for many motorists who are not prepared for the higher taxes.

As the UK gears up for these changes, it is crucial for drivers to stay informed about the new VED rates and plan accordingly. While the tax hikes aim to promote the adoption of electric vehicles, they also highlight the need for better communication and support for both drivers and the car industry.

Are you considering switching to an electric vehicle, or do you have any concerns about how these changes might affect you?

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