March 25, 2008
The Budget & Taxi Vehicle Excise Duty (Road Tax)
In the chancellors recent budget Gordon Brown announced that Vehicle Excise Duty, or Road Tax as we know it would be increased for the most polluting vehicles i.e. the 4×4 brigade would end up paying more road tax for their "Chelsea Tractors".
Most thought that this would only affect owners of large 4×4 vehicles. This is a totally misguided belief and has far wider implications especially for the taxi trade.
The new Vehicle Excise Duty (VED) rates are as follows:
Vehicles Registered before 01/03/2001
£180.00 for 12 months
£99.00 for 6 months
Vehicles Registered after 01/03/2001
£205.00 for 12 months
£112.75 for 6 months
Vehicles Registered after 23/03/2006
(Rates from 23/03/2007)
£300.00 for 12 months
£165.00 for 6 months
(Rates from 01/04/2008)
£400.00 for 12 months
What this basically means is that older Fairways & TX1's will pay the normal rate of £180.00 per year.
Later TX1's and TXII's registered after 1st March 2001 will pay the higher rate of £205.00 per year.
Any TXII or TX4 registered after 23rd March 2006 will pay the higher rate of £300.00 per year in 2007 and £400.00 per year after 1st April 2008.
So those of us that have committed to the financial burden of purchasing a new taxi are now being penalised by this Government for running more environmentally friendly vehicles.
In fact the cars that the Chancellor aimed this ridiculous tax at are totally unaffected, if you run a 6 litre diesel engine gas guzzler that was registered before 01/03/2001 then you will still only be liable to pay the ordinary rate of £180.00 per year.
VED is banded with Band A being the lowest cost and Band F being the highest, in the last budget a new band was introduced which is Band G, any Taxi registered after 23rd March 2006 falls into this new higher Band G.
It now becomes cheaper to Tax a Coach with 53 seats than a London Taxi with 5 seats!
This means that the taxi owner will be £195.00 per year or £16.25 per month or £3.75 per week worse off, those of you that rent newer taxis may find that your weekly rent increases by around £5.00 per week.
This is a cost that the taxi trade should not have to pay, the taxi trade should be exempt from this totally unfair charge.
Most thought that this would only affect owners of large 4×4 vehicles. This is a totally misguided belief and has far wider implications especially for the taxi trade.
The new Vehicle Excise Duty (VED) rates are as follows:
Vehicles Registered before 01/03/2001
£180.00 for 12 months
£99.00 for 6 months
Vehicles Registered after 01/03/2001
£205.00 for 12 months
£112.75 for 6 months
Vehicles Registered after 23/03/2006
(Rates from 23/03/2007)
£300.00 for 12 months
£165.00 for 6 months
(Rates from 01/04/2008)
£400.00 for 12 months
What this basically means is that older Fairways & TX1's will pay the normal rate of £180.00 per year.
Later TX1's and TXII's registered after 1st March 2001 will pay the higher rate of £205.00 per year.
Any TXII or TX4 registered after 23rd March 2006 will pay the higher rate of £300.00 per year in 2007 and £400.00 per year after 1st April 2008.
So those of us that have committed to the financial burden of purchasing a new taxi are now being penalised by this Government for running more environmentally friendly vehicles.
In fact the cars that the Chancellor aimed this ridiculous tax at are totally unaffected, if you run a 6 litre diesel engine gas guzzler that was registered before 01/03/2001 then you will still only be liable to pay the ordinary rate of £180.00 per year.
VED is banded with Band A being the lowest cost and Band F being the highest, in the last budget a new band was introduced which is Band G, any Taxi registered after 23rd March 2006 falls into this new higher Band G.
It now becomes cheaper to Tax a Coach with 53 seats than a London Taxi with 5 seats!
This means that the taxi owner will be £195.00 per year or £16.25 per month or £3.75 per week worse off, those of you that rent newer taxis may find that your weekly rent increases by around £5.00 per week.
This is a cost that the taxi trade should not have to pay, the taxi trade should be exempt from this totally unfair charge.
In the chancellors recent budget Gordon Brown announced that Vehicle Excise Duty, or Road Tax as we know it would be increased for the most polluting vehicles i.e. the 4×4 brigade would end up paying more road tax for their "Chelsea Tractors".
Filed under Blog by admin
