Government banks £7.5m from vehicle tax changes

The changes to vehicle excise duty announced in last week's Budget will hand the government a net gain of £7.

5m from new car buyers this year. According to Jato Dynamics, the average gain for buyers of low-CO2 cars will be £8 but the average extra cost for buyers of cars in the top two VED bands will be £29. Overall, the Exchequer will give around £6.5 million back to small-car buyers but add nearly £14 million to the road tax it receives from buyers of larger cars.

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