UK citizens will now have to shed their pockets a little more in order to pay the upgraded car tax prices. Not many of them are very happy with the government's this decision as they may not be able to catch up with the increased prices. The new tax order is relatively high and is designed to discourage people from driving fuel based cars that are posing a threat to the environment.
CO2 to Determine Your Car Tax
As per the new tax regulations every car owner will have to pay car tax prices according to the amount of CO2 emitted by their car. By taxing people more and pinching their pockets the government is affirmative that it will be successful in sending across its message and also keep the environment clean. In addition, to the increased car tax prices government also wants to encourage people to make use of hybrid and green cars as these make use of renewable sources of energy. In the new taxing plan the government has given the owners of hybrid and green cars a special rebate, under which they will be exempted from paying taxes.
13 Car Tax Bands
The revised car tax plan is as follows. Under this system the tax bands have been increased from seven to thirteen. Cars which fall into revised car tax bands A, B, C and D will have to pay nothing in the first year, with bands B to D attracting a £20 to £95 rate thereafter. Similarly, the cars that will come under tax bands E to G will have to pay £115 to £155 from purchase. Vehicles that will fall under band H to M will pay a premium rate of car tax, ranging from £250 to £950 in the first year, with future years payments dropping to between £180 to £455. In addition, a tax cut for drivers of alternative-fuel cars in 2009, will range from £15 to £20, however from 2010 this discount will be a £10 flat rate.
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