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The current annual car tax in the UK is a freaky thing. For cars registered before March 2001, it's a payment based on engine size (smaller or larger than 1.5
by EliRivers 3y ago
The current annual car tax in the UK is a freaky thing.
For cars registered before March 2001, it's a payment based on engine size (smaller or larger than 1.55 litres); couldn't tell if that's aimed at perceived wealth, pollution, or just leftover because that's how it was back when those cars were new.
March 2001 to March 2017, it's a payment based on CO2 emissions. Pollution based.
April 2017 to present day, it's a payment in the first year based on CO2 emissions, and each year after that a fixed rate based on fuel type only, EXCEPT that if the list price was over 40000 GBP in which case it's a bit higher for the 2nd to 6th years only. So pollution based for the first year, and then a short period of perceived wealth based, and then just a poll tax.
Come on UK, pick one! Are we taxing this based on pollution, apparent wealth or just plain poll?
Oh yes, also; if your vehicle was registered in 1983 or earlier, you can register it as exempt from this tax entirely. A UK nod to encourage classic car enthusiasts and people who are just really good at car maintenance, I guess!
It changes every so often. There was a time when this annual tax had nothing to do with CO2 emissions; that was judged to then be something that should be discouraged by means of this tax, so it changed.
If weight of vehicle is now a meaningful factor, an obvious step is to make this tax higher for heavier vehicles.
- beachy 3y agoI'm not familiar with the UK tax but here in NZ, new car tax has become a political football. The current opposition party tagged it the "Ute tax", which seems to have resonated with the more easily outraged members of society and those who crowd city streets with their stupidly large trucks for school drop-off. I anticipate politics-driven tinkering with it from here on in. Perhaps we will look like the UK after a few more political cycles.
- rsynnott 3y agoAIUI the engine size thing is a relic of the oil crisis; there was a desire to disincentivise high-consumption cars. At the time they wouldn't have been thinking primarily about pollution.
- yrro 3y agoApparently we can't do anything to change how existing vehicles are taxed on grounds of fairness.