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The "green levy" on motorists
announced in Alistair Darling's first Budget will double car tax
revenue to £4 billion but reduce vehicle emissions by less than one per
cent, Treasury figures have showed.
The Chancellor announced a significant increase in car tax in March.
This
will result in the owners of family cars, estates and people carriers
paying hundreds of pounds a year more to use the roads.
Mr
Darling claimed that the duty increase was designed to encourage
motorists to switch to greener cars and to reduce the environmental
impact of driving.
However, the Telegraph has seen
Treasury projections which disclose that while the amount raised from
car tax will more than double - from £1.9 billion to £4.4 billion by
2010 - carbon dioxide emissions from motoring are expected to drop by
less than one per cent.
Justine Greening, a shadow Treasury minister who
obtained the figures, said last night: "This is a massive tax hike
which will have virtually no impact on the environment.
"Despite
their claims, the Government don't expect this move to change behaviour
at all - it is just another eco-stealth tax of the worst kind."
Some
of the biggest tax increases are planned for drivers of mid-range
family cars, including some models of the Ford Focus, the Renault
Espace and even Nissan Micras.
However, the tax
rises for Porsches and Rolls-Royces will be less - leading to
allegations that poorer people are again being selected by a Labour tax
measure.
The Conservatives have predicted that
Gordon Brown will face a revolt similar to the 10p tax protest when
ordinary motorists encounter the large duty increases next year and
complain to their MPs.
The Budget announced a
radical overhaul of the taxation system for cars - known as vehicle
excise duty - claiming that the "majority of motorists will be better
or no worse off in 2009".
However, that claim has
been undermined by analysis showing that nine out of 10 vehicle models
will be taxed more heavily from next year.
Under
the scheme, cars will be divided into 13 groups for road tax purposes
depending on their CO2 emissions. Annual road tax will then be charged
at up to £440 for cars such as Jaguars, Range Rovers and even some
people carriers, emitting more than 255g of CO2 per kilometre.
Cars producing less than 100g will not be taxed.
At
present, there are seven bands, with the least green vehicles paying a
maximum of £400. Some family cars will move up several bands.
The
tax on a Vauxhall Astra 2.0i 16v or Saab 9-3 MY2008 will more than
double, from £210 to £430. The owner of a Ford Focus 1.6 Duratec will
pay 59 per cent more (£170 to £270), and tax on a Citroen Xsara Picasso
will rise by 48 per cent to £310.
From 2010, there
will also be a higher first-year rate - described as a showroom tax -
for new cars. This will be levied on all cars emitting more than 130g
of CO2 when they are bought and varies from £115 to £950.
Models
attracting the £950 charge include Volkswagen Touaregs, the Audi A6 and
A8 and Volvo V70s. Those in the next band - paying £750 - include
Vauxhall Vectras, Mercedes M and E class estates, and Mitsubishi
Shoguns.
The latest figures show that, following
the changes, the amount of revenue raised from vehicle excise duty will
increase from £1,923 million in 2007 to £2,920 million this year. It
will go to £3,720 million in 2009 and to £3,920 million in 2010.
An additional £520 million will come from the showroom tax in 2010, taking the Government's tax haul to more than £4 billion.
Edmund
King, the president of the AA, said that motorists would be "shocked"
when they had to pay the higher levels of vehicle duty for virtually no
environmental benefit.
"The draconian nature of
the measures are not yet understood by the public who face a double
whammy after also being hit with higher petrol prices," said Mr King.
"If
the projected results of the move would be to significantly reduce
carbon dioxide emissions, the motoring public would be more likely to
accept it. But it just benefits Treasury coffers not the environment."
There
are almost 30 million cars registered and the number increases by about
500,000 annually. Therefore, only a small amount of the extra tax take
is down to a rise in vehicle numbers.
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