DVLA says car tax changes will 'charge drivers £600 more per year'

New car tax changes and VED rates launching in April will see drivers paying more for their vehicle registration.

The DVLA has announced a major overhaul in car taxes that will charge drivers an additional £600 per year.

The new car tax changes and VED rates go into force in April 2025 under the new Labour Party government. Huge changes are being introduced in efforts to make taxes “fairer” and will impact more than one million drivers in the UK.

Electric car owners will now be required to pay Vehicle Excise Duty (VED) - previously, only petrol and diesel drivers were required to pay, Birmingham Live reports.

Letters from the DVLA have begun arriving at homes to inform registered car, van, and motorcycle owners of the changes. It reads: "When the time comes to tax your electric vehicle, your vehicle tax will be calculated automatically, and you'll receive a reminder."

However, proponents of electric vehicles are urging the government to slash the fee, considering that about two-thirds of models in the UK - such as the Tesla Model Y - would now be taxed.

The government website stated: "From April 1, 2025, drivers of electric and low emission cars, vans and motorcycles will need to pay vehicle tax in the same way as drivers of petrol and diesel vehicles. This change will apply to both new and existing vehicles.

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"This new measure effectively removes band A under the existing VED system which is currently £0. Vehicles in this band will be required to move to the first band where a rate becomes payable."

The DVLA has said that while it administers and collects vehicle tax on behalf of HM Treasury, all decisions on vehicle tax are a matter for the Chancellor of the Exchequer and not the DVLA.

In addition to the car tax and VED charges, owners of premium electric models may soon be slapped with the luxury vehicle tax starting in 2025. The £410 tax is imposed on vehicles above £40,000 during the first five years after registration.

This fee currently does not apply to electric vehicles, but the change would mean that some electric vehicle owners would need to pay an extra £600 per year.

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