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£1000-plus green car tax moves a step nearer

Date: 13 November 2007

Recent reports in BusinessCar revealing the cost of car tax is likely to soar on the Government's green agenda have been backed-up by a news story in The Times.

Following October's Pre-Budget Report we wrote: "An increase in taxes for the most polluting vehicles and incentives for the cleanest car technology can be expected in the 2008 Budget following an announcement by the Chancellor.

"Revealing the interim version of the The King Review of Low Carbon Cars Alistair Darling said the final King Review would be published in time to inform Budget 2008."

This was backed by comments from environment expert Don Potts reported by BusinessCar last week. Potts said that according to his sources within the Treasury, the Government is also considering raising VED on Band G cars to significantly greater levels; perhaps as high as £1500 to £2000 a year.

The Times, which spoke to professor Julia King author of the Low Carbon Cars review, reported that buyers of high emission cars face increases of up to £1000 in vehicle excise duty and purchase tax.