Vehicle tax system to be overhauled for 2017
Source : Vehicle tax system to be overhauled for 2017
In his first budget of the completely new Conservative government, Chancellor George Osborne says completely new tax bands will be created through 2017
Chancellor George Osborne has pledged to “improve life for the motorist” that has a completely new vehicle tax system that will will come into force through April 2017.
Delivering his first budget of the completely new government, along with the first budget of a Conservative government since 1996, Osborne said a completely new Vehicle Excise Duty tax system might be designed to take into account the increase within the numbers of low-emission vehicles on UK roads.
Addressing Parliament, Osborne said the current VED system “isn’t sustainable or fair” given the rise in low-emission vehicle ownership, which sees increasing numbers of people paying no VED at all during their first year of ownership.
The completely new system means that will the first year of vehicle tax will be based on a revised series of emissions bands. Thereafter, the rate of tax will be calculated by a completely new series of bands designed to separate between low-emission, standard along with ‘premium’ vehicles.
Though the actual prices in those completely new bands have yet to be set, the average cost of annual vehicle tax is usually set to be around £140.
Cars that has a list cost of over £40,000 will also pay an extra £310 for the first a few years.
The budget statement makes clear that will the system will be reviewed as necessary to make sure the cleanest vehicles are incentivised.
The money raised through VED will be set aside for a newly created roads fund, which will be put into action at the end of This particular decade to pay for the upkeep along with improvement of Britain’s roads. Osborne said the completely new fund was designed to create “the sustained investment for the roads we so badly need.
“This particular is usually a major reform to improve the productivity of our economy along with improve life for the motorist.”
Osborne said four fifths of journeys within the UK are right now taken by road, along with yet the UK has built just 300 miles of motorways within the past 25 years.
The Chancellor has also kept the promises he made during last year’s autumn budget, reiterating that will fuel duty might remain frozen just for This particular year.
Describing his budget as a “budget for working people”, Oborne said: “Our long-term economic plan is usually working, nevertheless the greatest mistake This particular country could make is usually to think that will all our problems are solved.
“This particular is usually a big budget for a country with big ambitions.”
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