From April next year, a tax increase is to be levied against diesel vehicles that do not meet the most recent UK emissions standards.
The one-off tax will be applied to those new diesel vehicles that fall short of the Real Driving Emissions Step 2 standards on emissions in their first year of ownership.
According to industry experts, this will mean that the vast majority of new diesel vehicles will be subject to the increase.
Varying rates of Vehicle Excise Duty will be applied depending on the vehicle’s emissions banding, although this increase only applies to cars and not commercial vehicles.
The chancellor has implemented this charge in an effort to support continued improvement to air quality and encourage consumers away from diesel cars.
This comes as no surprise given the governments continued support of electric vehicles, with another £100m in subsidies available to members of the public, hopefully encouraging more to switch to “greener” vehicles.
The chancellor also unveiled a £220m Clean Air Fund and £400m to improve the charging infrastructure for electric vehicles, split equally between the Treasury and motor industry.
“What if I’ve already got a diesel car?”… You won’t pay more. Only new vehicles bought from April next year will see the rise in duty.
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EL for Leasehub Journal