Road Tax is Stealth Tax, Drivers Claim
A new poll among members of the AA has exposed the unpopularity of road taxation in Britain.
According to the new data, which was released today, 82 percent believe that the levy is being used by the government as a "stealth tax". Members also expressed scepticism regarding the efficacy of Vehicle Excise Duty (VED), a type of road tax which is aimed at encouraging Britons to switch to more environmentally-friendly cars.
VED works by dividing vehicles into separate bands, based on their carbon emissions, and then charging varying rates accordingly. However, the poll showed that a majority (59 percent) believe that the tax should not be retrospectively charged to all cars registered from 2001, 56 percent agree that the new system "should be stopped" and a further 35 percent "do not understand" the tax changes in the first place.
AA president Edmund King commented: "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 becomes a '10p tax on wheels'."
He added: "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."
Results of the poll have been sent to the chancellor of the exchequer, who recently announced that he would scrap a proposed 2p increase on fuel duty - another type of road tax. High petrol prices and a consumer outcry on the issue are thought to have contributed to the decision to suspend the rise.

Comments (1)
Latest Tax Articles & News
Tax Articles
A new three percent income tax is proposed as its replacement by Scotland's first minister.
4 Sep 08The tax-free allowance on inheritance could rise to £2 million, new plans mooted by the Conservative party suggest.
2 Sep 08All former 10p and 22p band taxpayers are to benefit from a lump sum in this month's paycheque.
1 Sep 08The levies paid by buy to letters who sell their homes has been halved, the Mortgage Works has revealed.
29 Aug 08Pro-environment levies administered by the government are bleeding taxpayers dry, it has been suggested.
28 Aug 08The introduction of a new government charter protecting consumers from over-zealous inspectors will come too late, it has been claimed.
26 Aug 08A top Tory has provided support for Labour's scheme to impose pollution-linked vehicle excise duty to drivers dating back to 2001.
4 Aug 08Today is deadline day for renewing tax credits - and the system is coming under strain as a result.
31 Jul 08Popular Related Articles
Latest Related Headlines
Other Money Headlines
- 08 Sep Water Meters 'Cause Bill Rises for...
- 08 Sep Energy Firms Slammed Following...
- 08 Sep Housing Market 'Won't Recover...
- 08 Sep American Express 'Raises Charges...
- 08 Sep Properties 'Remaining on the...
- 05 Sep £5 European Flights
- 05 Sep Home Insurance Warning Issued...
- 05 Sep Stamp Duty Cut 'Fails to Meet...
- 05 Sep 'Pensions Car Crash' Predicted by...
