Another piece of Darling misdirection

Did you spot Alistair Darling saying (my emphasis) "First, I propose a major reform of vehicle excise duty from 2009 to encourage manufacturers to produce cleaner cars with the introduction of new bands. There will be an incentive to encourage drivers to choose the least polluting car. As a second stage for new cars, from 2010 there will be a new first-year rate based on carbon dioxide emissions from the car. Cars that emit less than the proposed 130 g European standard will pay no car tax at all in the first year, but a higher first-year rate will be introduced for the most polluting cars. Cutting taxes for those who cut carbon emissions; but it is right that if people choose to buy a more polluting car, they should pay more in the first year to reflect the environmental cost. These changes will provide a real incentive for both manufacturers and motorists."


You will not be surprised to learn that this is a tax raising piece of legislation and that more people will pay more vehicle excise duty than will pay less.

The Tax Payers Alliance have produced a helpful guide, which you can see linked to this page.


Here is their summary:

"A heavy majority of the different car models in current production will face increased taxes under the new charging structure, even compared to the 2008-09 rates:

88 per cent of cars will pay more under Darling's new charging structure.
2 per cent of cars will pay the same under Darling's new charging structure.
9 per cent of cars will pay less under Darling's new charging structure.



The higher rate in the first year, the "showroom tax", will apply to most cars - with only a small number paying less in the first year:

72 per cent of cars will pay more in the first year than in subsequent years.
22 per cent of cars will pay the same in the first year as in subsequent years.
6 per cent of cars will pay less in the first year than in subsequent years."