Government says car tax 'under review' after drivers hit by £140 VED charge

Car tax changes are "under review" amid calls for electric vehicles to remain exempt from price hikes. The government has issued a lengthy response to the Lords Environment and Climate Change Committee Report 2024.

And in the reply to the Lords, it agreed with recommendations calling for salary sacrifice schemes to remain and be promoted. The response to the report stated: "The Government has committed to keeping the transition to electric vehicles affordable for consumers.

"All taxes are kept under review." It comes after a new national newspaper poll of over 1,000 respondents found that over a quarter completely missed the new tax rules. 28.7 per cent of those polled answered no when asked if they were aware of the new VED changes in April.

READ MORE UK braced for first 'official' heatwave of year with temperatures in 'high 20s'

Motorists who have purchased brand new cars emitting over 255g/km of CO2 have been hit with the biggest rise, with year one fees going up from £2,605 to £2,745 in a staggering £140 increase this month. And next year will see electric vehicle (EV) motorists pay for the first time, too.

The government stated that Benefit-in-Kind (BiK) tax rates are kept low for electric cars until April 2028, rising by one per cent per year from next year onwards. Responding to the new rates, one social media user typed: "There's no such thing as road tax in the UK. It was abolished in the 1930s.

"Roads are now paid for out of general taxation." A second said: "Everyone knows what people meant when they say " Road Tax " which is now called Vehicle Excise Duty but to Millions it will always be Car / Road Tax."

"And in 2025 all non polluting Electric Vehicles will have to pay the pollution tax! LOL," another said. "There should be some tax for using social media," another sniped.