Millions of drivers warned car tax could surge in 2025

The Government has not ruled out hiking car tax for millions of drivers in 2025. Some major tax changes have already been announced for next year.

This includes electric vehicle owners having to pay for the first time and increases for new cars. But now the standard flat rate paid by most motorists once a car is over one year old could be raised too.

This is currently £190. But the Government has not confirmed whether this will stay the same going forwards. It said the rate was "subject to change for 2025", leaving drivers in the dark about how much they might have to pay.

READ MORE: Drivers of these popular family models will see car tax double from April

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2025 is already a big year for car tax changes. Owners of electric cars will find themselves having to pay for the first time. If their car is over a year old, they will have to pay the standard rate.

Meanwhile, first-year charges are being hiked on a number of popular models. Electric vehicle owners have previously enjoyed the perk of not having to pay any road tax.

But the Government has decided this can't go on any longer. With the number of EVs on the roads increasing by the year, it would mean the Government increasingly losing out on tax revenue.

It said first-year tax hikes would make people more likely to buy electric cars. "The Government is committed to supporting the transition to electric vehicles. This change will increase the incentives towards new zero-emission cars at the point of purchase, and support take-up of new electric vehicles, which is crucial to achieving Net Zero. Revenue from this change will also help support public services and infrastructure across the UK."