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New VED Tax Regime! Will it Damage the Environment More Than CO2 Emissions?

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Low Emission Zones UK

New VED road tax band will stop the drivers from buying ultra-low emission cars and the results, everyone knows…

AA has conducted a study to find out the apprehensions about the new VED road tax for ultra-low emission cars. AA study reveals that at least 59 percent drivers from the UK will not opt for low emission cars after this tax. Almost two third of UK drivers, according to the study, believes that new tax system has little or even no incentives to buy new ultra low emission cars.

More strict Vehicle Excise Duty bands are coming into authority from 1 April 2017 onwards. According to the new tax system, only zero emission vehicles will be exempt from first year rates and after the year one, a flat fee of £140 will be charged on all vehicles which are not categorised as zero emission vehicles.

Under the new tax system, a number of car models exempt from paying the flat fee of £140. Their tax rates will vary from £13 to £445. A supplement fee of £310 will also be charged to the cars with price more than £40,000, engine size does not matter in this case. This fee will be charged for five years.

The president of AA, Edmund King believes that the current VED tax system is more effective than the new one and encourages the motorists to buy low emission cars. While authorities believe that the current system is out dated and needed to be reviewed.

He thinks that the new system will not encourage the drivers in the UK to take-up ultra-low emission vehicles because the new system will encourage only all electric or hydrogen fueled vehicles. The Upcoming system could have been reviewed to give more relaxation and flexibility to the drivers to encourage them to buy low emission cars.

The government believes that under the current scheme, at least three-quarters of new cars will be exempted from tax by 2017.

Now it’s your turn to express your ideas about new tax system that “Is it more dangerous for the environment than high carbon emissions?”

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