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thomas davison

New stealth tax attack on drivers of the greenest cars: AA warns motorists to brace themselves for more painTreasury will tighten the screw on drivers by increasing taxes on greener models to maintain revenue
AA calls the plans sinister and believes they are tied to plans to privatise motorways and trunk roads
Move was indicated in the last Budget, but was hidden in the small print and not announced in Budget speech

By Ray Massey and Gerri Peev
PUBLISHED: 04:20, 31 May 2012 | UPDATED: 09:47, 31 May 2012

A new 'stealth tax' assault on Britain's 34million motorists is set to hit drivers of the greenest cars, the Daily Mail can reveal.
The move to 'reform' Vehicle Excise Duty (VED) will tighten the tax screw on drivers by increasing the amount of revenue all motorists have to pay � whether their cars are green or gas-guzzlers.
The assault was signalled by Chancellor George Osborne in the small print of the last Budget though not mentioned in his Budget speech.
'Sinister': George Osborne, left, signalled the move in the small print of the last Budget, and Treasure minister Chloe Smith, right, outlined it to MPs last week

Treasury minister Chloe Smith last week told MPs debating rip-off fuel prices and calling for the ditching of controversial 3p duty rise in August that they were 'considering whether vehicle Excise duty should be reformed to support the sustainability of public finances and to reflect the improvements in vehicle fuel efficiency.'
The AA said the changes sound 'sinister' and warned drivers to brace themselves for more pain.
The motoring group also believe the shake-up is tied to the Prime Minister's controversial plans to privatise the main motorways and trunk roads in England � paying a proportion of the road tax collected to private companies who win the franchise to run them. The will also be allowed to raise tolls on any new roads or lanes they create.
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Chancellor George Osborne did not mention the shake-up in his Budget speech. But the Daily Mail can reveal that the plan is outlined in one brief paragraph on page 70 of the Treasury 'red book' setting out Government intentions.
It says: 'The Government will consider whether to reform VED over the medium term to ensure that all motorists continue to make a contribution to the sustainability of the public finances, and to reflect continuing improvements in vehicle efficiency.'
Taxes for vehicles were first introduced in the 1888 budget � before the first motor cars hit the road.
Flat rate vehicle excise duty was ring fenced for spending on road construction from 1920. But this ended in 1937, after which it became a cash cow for funding other areas of government spending.
The government started to levy varying taxes on cars depending on their CO2 ratings in March 2005. Ministers claimed it was to encourage people to buy cleaner cars.
It was reformed along a sliding scale of 13 bands - from zero to more than �1,000 - and follows the principle that 'the polluter pays.' The more a car pollutes - based on emissions of carbon dioxide CO2 per kilometre driven - the more the driver pays.
The beauty of the system from a Treasury perspective is that the cleaner cars become, the more it can tighten the screw.
Green car of the year: Drivers of cars like the Vauxhall Ampera face taxes on the vehicles being hiked as more environmentally friendly vehicles go on sale

The Treasury told the Daily Mail it had ruled out a return to the original 'flat rate' road tax for cars and said it would be consulting with motoring groups on reform. But the AA says there are two key clues to the Government's intention.
It highlights the Treasury desire 'to ensure that all motorists continue to make a contribution to the sustainability of the public finances.'
That suggests drivers of even the cleanest vehicles could lose their tax exempted status, and that the level of tax paid at each level will rise.
The call 'to reflect continuing improvements in vehicle efficiency' also suggests the tax screw will be ratcheted up to account of the fact that ever-cleaner cars mean that yesterday's 'green' car is tomorrow's 'gas-guzzler.'

Vehicles are currently divided into 13 'bands'. From April 1 drivers of the least polluting vehicles in 'Band A' below 100g/km pay nothing. Those in Band B between 101g and 110g/km pay �20. This rises steeply to top 'Band M' where drivers of cars in excess of 255g/km will pay �475 � though in the first year of ownership this soars to �1,030 as a further disincentive.
But AA spokesman Paul Watters pointed out that many mainstream diesel cars already have sub-100g/km emissions � and therefore pay no tax. There are currently 57,000 vehicles in this zero bracket, nearly 500,000 in Band B and more than a million in Band C.
Public highways? The AA believes the new tax hikes are linked to David Cameron's controversial plans to privatise the motorways and trunk roads
Mr Watters said:'The Governmnent is going to tighten the tax screw. Cars are getting cleaner so the Treasury risks losing tax. Tightening the Bands is one way to ratchet up the income.
'They can't have too many cars which are clean and tax free. So they may scrap the tax-free status for the cleanest cars'Paul Watters, AA spokesman
'They can't have too many cars which are clean and tax free. So they may scrap the tax-free status for the cleanest cars.'
But he added:' The timing is also key. The Prime Minister has raised the spectre of privatised motorways and trunk roads. He suggested they would receive a proportion of the road fund licence. To do that he might have to reform vehicle excise duty.'
He added: 'Rising fuel prices mean people are driving less so the Government is getting less fuel tax. This may be a way to plug the gap. It's a bit sinister. We'll be disappointed if they ratche up the tax'.
Labour's Shadow Transport Minister John Woodcock MP said: 'Instead of tackling the soaring price of fuel, the Chancellor has hidden plans for another stealth tax hike on motorists in the small print of the budget.
'The Conservative-led government must come clean about how much extra they plan to charge hard-pressed motorists by whacking up the rate of vehicle exercise duty.'
A Treasury spokesman said:'We are asking questions. We are consulting.'

NEVER IN THE FIELD OF BRITISH HISTORY HAS SO MANY PAID SO MUCH TAX, TO AN INEPT FEW GOVERNMENT POLITICIANS AND BANKERS AND FOR WHAT? SO THEY CAN GIVE IT AWAY TO SAVE THE EURO!!!

its the rich and greedy, plundering the poor and the needy... they line their pockets, at our expense... maggie did it, blair did it... they're as bad as each other i'm afraid.but tax the fuel... and everyone pays...OR DO THEY?