Diesel car tax hike to fund electric 2040 petrol and diesel sales ban

Diesel car tax hike to fund electric 2040 petrol and diesel ban

The Government’s ban on the sale of new petrol and diesel cars will be funded by a hike in taxes on diesels or a shuffling of existing funds

The Government will increase taxes on diesel cars in order to fund its planned ban on internal combustion-engined cars from 2040 unless other existing funds can be ‘reprioritised’. 

The ban, which will abolish sales of all new petrol and diesel cars (but not hybrids or plug-in hybrids) is the culmination of a period of intensifying anti-fossil-fuel and pro-air-quality rhetoric. 

It’s not yet known how much the taxes would amount to for each diesel driver, but they would be in addition to the £10 T-Charge, which was announced earlier this year to discourage diesel drivers from already polluted city centres, as well as other levies to discourage drivers out of diesels. 

The Government will announce the measures later this year, likely in the autumn budget statement. The detail has fuelled further speculation of the end of diesels in the UK, from used car buyers ditching them in the wake of higher taxes and charges, as well as through the Government’s planned scrappage scheme, and new buyers snubbing them in favour of petrol, petrol-electric hybrids and pure EVs

This tax hike would be another blow for the Government’s latest VED scheme. These new VED rules have already faced criticism for inadvertently penalising more expensive hybrids out of contention with traditional petrol and diesel cars through a £310 annual ‘premium fee’ for cars with a list price of more than £40,000. 

Read more:

Hybrids exempt from Britain’s petrol and diesel car ban

Opinion: How the Government’s air quality strategy could hit used car buyers

Comment: The questions the government must answer before a combustion engine ban

£10 T-charge for high polluting vehicles to start in autumn

Source: Autocar Online

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