Excise Duties: Motor Vehicles

Treasury written question – answered on 11th March 2009.

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Photo of Greg Knight Greg Knight Chair, Procedure Committee

To ask the Chancellor of the Exchequer if he will defer the changes to vehicle excise duty planned to be introduced in 2010 in order to assist the automotive sector.

Photo of Angela Eagle Angela Eagle The Exchequer Secretary, Member, Labour Party National Executive Committee

The 2008 pre-Budget report announced both standard and first year rates of vehicle excise duty for 2010. Under the standard rates, no driver will pay more than £30 extra in any given band in 2010 compared with 2009 and many will see a reduction of £30.

Under the new first year rates, cars emitting between 100 to 130 grams per kilometre of carbon dioxide will pay no vehicle excise duty in the first year of registration and cars emitting up to 165 grams per kilometre will pay no more than under the standard rate.

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