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Car Tax Rises Leading To Confusion And Anxiety
By Swinton Group
In the wake of the latest Budget announced by the Chancellor of the Exchequer, there is growing confusion about which cars will be clobbered for more tax according to one of the UK’s leading insurers.
Swinton Insurance is concerned that the latest wave of tax rises outlined by Gordon Brown is leaving drivers unsure about which category their fits into and whether their vehicle is one of the heaviest polluters.
The Manchester-based insurance company believes that the vast majority of drivers of family saloon type vehicles are unsure where their fits on the pollution scale and how much it is costing them.
But, more alarmingly, an increasing number of drivers are getting worried that they may unwittingly be falling into Vehicle Excise Duty (VED) banding brackets which are becoming demonised for being so-called gas guzzlers.
Jon Kirk of Swinton Insurance said that it is all very well the Chancellor raising tax for the heaviest polluting vehicles and lowering it for the most environmentally friendly cars, but the simple truth is very few people actually know which of the seven A-G bandings their cars fall into.
“It came as no surprise that the Chancellor put up tax on the heaviest polluting vehicles in the latest Budget,” said Jon. “And most people know that 4x4s are the worst polluters on UK roads, but that’s not the whole story.”
As he points out, figures from the Society of Motor Manufacturers and Traders revealed that the worst polluting band only accounted for 7.5 per cent of all new cars sold in 2006.
At the other end of the scale the number of cars which fall into the first two bands only accounts for 4.7 per cent of cars.
“This means that nearly 90% of cars on UK roads fall into just four of the seven bands,” said Jon. “So you can see where the concern is arising as there seems to be a huge mid-ground where owners of typical family cars can’t be sure where on the scale they are in terms of carbon emissions.”
Swinton Insurance points to a list of examples of cars in the different bands to try to help clear up some of the confusion.
Band A (cars which emit less than 100g/km) includes the Honda Insight petrol electric hybrid and the Smart diesel.
Band B (cars which emit between 101-120g/km) includes the Toyota Prius 1.5 litre petrol-electric hybrid,
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