Drivers warned over VED bands as ’stealth tax’ to | Tech News
New car tax adjustments set to come into impact in days have been blasted as “stealth tax” with some petrol and diesel highway customers set to really feel the sting of “brutal” price hikes from April 1. Paul Cowland, host of restoration sequence Salvage Hunters, has warned new tax rises are “going to hurt” highway customers, with one group of house owners most affected.
Those with the keys to model new petrol and diesel automobiles face a double blow with Expensive Car Supplement charges growing alongside Vehicle Excise Duty (VED) hikes. Although EVs have a new £50,000 threshold, petrol and diesel vehicles pays the extra £440 Expensive Car Supplement payment if they’re listed over £40,000.
Meanwhile, first-year charges rise by a whole bunch of kilos, with some customers slapped with payments as high as £5,690 per yr.
Speaking on YouTube channel @Cowland Car Collection, Paul mentioned: “If you’re shopping new or nearly new , it’s going to hurt, there’s no two ways to say this. First of all the £200 flat rate kicks in straightaway after the first year. The luxury threshold stays £40,000 for all petrol and diesel, but EVs get a break, £50,000 if you want a swanky EV.
“Some Teslas and some Polestar will dodge the £440 supplement. But the first-year rates for thirsty new SUVs and performance cars are brutal. Thousands up front. Everyone is claiming it is a stealth tax on driving and you know what, I don’t disagree with that.”
Slightly much less polluting fashions producing between 226 and 255g/km of CO2 additionally face steep rises, with prices up £170 from April 2026 to hit £4,850 every year.
However, much less polluting fashions are solely set to discover a slight rise in first-year payments, with vehicles emitting between 50g/km or 51-75g/km paying simply £5 more. Meanwhile, fashions between 76-90g/km and 91-100g/km pays payments £10 increased.
Paul added: “On newer cars, there are some big bills coming, but if you can afford the kind of cars that the new tax bills affect, you’ve probably got enough money not to worry about it in the first year.”
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