Budget - Vehicle Excise Duty (VED)

Mar 23, 2006 23 Replies

In message , Steve Walker writes

Affects.

The point being that the band A reduction did not cost anything because there are hardly any band A cars on the road. If VED was calculated as a linear function of CO2 output, it would not be possible to do this kind of thing.

The fact that you have to do the numbers to know whether it's an overall increase or decrease in tax is what I mean by smoke and mirrors; without knowing how many cars fall into each band, you can't tell what the overall effect of tweaking the rates is.

That's why the treasury likes bands. See also the effect of fiscal drag on income tax bands.

Well... maybe they could have a lookup table. To make it a bit simpler, lets split it into bands, maybe 30 or so g/Km wide - that should make it 7ish bands to cover the current range of cars. Below 100g/Km make it £0, then above maybe 225 or so make it a top rate to catch all the high polluters without getting ridiculous.

That would be easier!

I dont suppose anyone has done a breakdown of what kind of vehicles are in each band? bit like a parkers insurance group table? Yes I know theres a list of exact makes and models on the dvla website, I mean a rough guide with pretty group boxes or some kind of segmented list with approx engine sizes, fuel and induction methods taken into account?

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