Why poorer families will be 'hardest hit' by steep rises in car tax

By: Michael Lea

Source: Daily Mail
Date: 11th July 2008

 

Hundreds of thousands of car owners earning less than £15,000 a year will be hit with road tax rises of up to £245, new estimates have revealed.

Almost 400,000 of the poorest drivers will pay an average £80 more, equal to two days' take-home pay, under controversial Government plans to overhaul vehicle excise duty.

Around 140,000 will be stung for at least £100, while those with the most polluting vehicles will be subjected to the maximum £245 increase  -  more than a week's wages.

The figures come a day after the Treasury revealed that almost half of all motorists - 9.4million - will be worse off once the scheme is fully implemented in 2010.

And they are certain to stoke further anger from rebel MPs furious that another Labour tax change will hit the poorest hard following the 10p tax fiasco.

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