Diesel Cars To Be Hit By Tax Increases In 2017 Budget

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June 25th 2022
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Diesel Cars To Be Hit By Tax Increases In 2017 Budget

A number of options are being considered for the Autumn Budget that will penalise diesel car owners.

Following the 'diesel-gate' revelations from September 2015, diesel vehicles have been heavily scrutinised for poor emissions due to not only fiddled CO2 outputs but also considerably higher NOX (Nitrogen Oxide) outputs - which can be attributed to respiratory problems.

In a stance toward addressing these concerns and hitting air quality targets, the Chancellor is thought to be discussing a number of methods to decrease usage and further take-up of diesel cars. Some of the options in planning stages are said to be retrospective so would apply to people currently driving diesels - not just those purchasing a new diesel vehicle.

The Chancellor could:

  1. Increase the fuel duty on diesel fuel.
  2. Raise the cost of VED for diesel vehicles.
  3. Surcharge or increase VAT on new diesel car sales.

The first two of these options will create outrage among many current diesel vehicle owners as for a long time the government pushed and incentivised the purchase of diesels by setting VED based upon CO2 output - of which diesels measured lowered than petrols.

Car manufacturers have attempted to acquiesce current owners by offering scrappage schemes with allowances of around £2,000 to trade into a new vehicle but this is not an option many can afford to take.

Sales have already been stalling for diesels with just last month another third dropping - with people substituting with petrol, hybrid or EV/Alternative-Fuel vehicles. Used values will take even harder hits depending upon the level of budget penalties applied.

A further squeeze is expected as other major cities plan to take London's lead and apply a surcharge for low-emission zones for pre-EU6 standard diesel cars. There are also plans to increase parking charges for diesel vehicles in major town centres.

Tagged in:

budget diesel ved
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