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Deceitful Darling Print E-mail
Written by Philip Salter   
Thursday, 01 May 2008

Yesterday The Times led with the revelation that the government is introducing a secret tax that will add £200 to cost of many family cars:

Tens of thousands of families will have to pay up to £245 extra a year under new road tax rules after a covert government decision to include cars up to seven years old.

This move is entirely deceitful. If car buyers had known at the time of purchase that buying a car that emits over 225g of carbon dioxide per kilometre would mean such an added cost, they might have thought twice before acquiring it.

As Chancellor, Gordon Brown steered clear of such dishonesty. However, as Prime Minister he has allowed this retroactive policy to be initiated under his watch. Originally cars bought previous to March 23 2006 were exempt from the tax, but Alistair Darling in the last budget announced a new series of car tax bands that rescind the previous exemption, leaving the already over-taxed motorist with even less money in their pocket. The Automobile Association (AA) claims that this will push many people into negative equity because the value of these cars on the second-hand market will now be worth thousands of pounds less than the car owner’s outstanding loans.

Given the rising fuel, utilities and food costs such a stealth tax is plain wrong. The people it will hit are families; these are not super cars but family cars, chosen not for their power but their safety record. Take a look at the EURO NCAP safety standards for the Renault Espace, the Vauxhall Zafira and the Ford Galaxy; three cars that will now be heavily taxed.

What, you may ask is Alistair Darling’s response to hardworking families hit by another stealth tax? Upon being asked in a radio interview what those facing higher car taxes, his answer was that to suggest that they should by new cars. Maybe if you stop taxing us, Darling, we might be able to.

Comments (8)Add Comment
...
written by john gooch, May 01, 2008
is this not another demonstration as to how duplicitous this goverment is, ie I believe Mr Brown & Mr Blair stood on the
platform in 1997 and said " watch my lips, we will not raise income tax to fund our policies" I think they have introduced
60 plus new stealth taxes instead, Brown then goes on to rob the pension funds and sell our gold reserves, nice one !.
typical new labour.
regards
Another blow to the less well off
written by Chris Sambrook, May 01, 2008
This Government, seems intent on taxing the less well off out of existance. First the removal of the 10p tax band in the face of rising mortgates, fuel and food costs and then the introduction of an inequitous stealth tax affecting the owners of older vehicles, run sureley, by those least able to do anything about replacing them. Social justice ? I don't think so !.
...
written by Steve Giess, May 01, 2008
The brazeness of this Government's stealth taxes never ceases to amaze. I suppose having got away with it more than once then they will just keep on 'trying it on'.

Something about 'fooling all people and Governments'??
Negative Equity
written by fjfjfj, May 01, 2008
Negative equity?
It's a car!
Not just families
written by Jeremy Poynton, May 01, 2008
I'm 6'6". Any small car causes me physical damage if I drive it regularly, indeed, I have hip problems as a result of driving too much for too many years. So now I am to be taxed for being too tall. Fantastic.
Getting it out the way now
written by Simon, May 01, 2008
I wondered why this became news yesterday. Then it dawned on me.

This tax hike would have started to hit next year and then massively in spring 2010.

And when is the General Election due?

One can just imagine the debate in the Downing Street bunker: "OK chaps, the 10p thing was a complete f**k up, but at least it's only local elections this year. Are there any of our other hidden tax rises that nobody has spotted yet and which will start to hit the voters before the election proper? The extension of the car tax hike to old cars? Oh, f**k - that's going to take £200 out the pockets of just the people who have been hit by the 10p. Oh, s**t, better start briefing the papers and get the bad news out now."
...
written by HJ, May 01, 2008
A bit unfair on Alistair Darling, I feel. Gordon still decides the budget - if it was up to Darling, he would have abandoned the doubling of the 10p tax rate, because he's not entirely stupid.

"As Chancellor, Gordon Brown steered clear of such dishonesty". Very droll. I almost laughed. For a minute I though you were serious.
New Cars
written by Not an Economist, May 02, 2008
I may be wrong but I thought new cars underwent a tax hike aswell in the recent budget. If thats so how does buying a new car - as Darling suggests - help people to avoid any tax increase?

Also, I am on middle income and I could not possibly have afforded a brand new car when I bought a second hand recently. Of-course I could take out a loan but then banks are being increasingly more cautious with their lending at the moment - sthg to do with a rather minor financial crises engineered by Gordon Brown (albeit thru incompetence rather than design) while he was Chancellor. Plus I try to avoid personal loans (except for my mortage) - sthg I had always considered to be rather prudent and sensible. Obviously Alisdair thinks I should be more reckless and rack up some serious debt. Just as Labour has encouraged the entire population over the last 10 years with its constant Keynesian urges to spend, spend, spend, and mirrored also in the govt's surging public sector debt.

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