Seeing Red Over “Green” Taxes

British Prime Minister Gordon Brown is about to get raked over the coals in parliament over his latest greenmail scheme. The proposed "green" change to road taxes will subject a huge number of Britons to a massive tax increase - retroactively - for driving cars with larger engines. British MPs are furious.

The Treasury admitted on Wednesday that almost half of all drivers will be hit with significant rises in Vehicle Excise Duty (VED) on cars with larger engines.
 
Less than 20 per cent will be better off because of tax cuts on cars with lower emissions.

But only last month in the House of Commons, the Prime Minister told David Cameron, the Tory leader, that if he looked at the VED plan, "he will see that the majority of drivers will benefit from it."

George Osborne, the Tory shadow chancellor, has said that Mr Brown "misled" parliament, and called on the Prime Minister to explain his remark…..

….The plans - against which The Daily Telegraph has campaigned - are especially controversial because they are effectively back-dated, applying to cars that are already on the road.

Treasury figures slipped out in a parliamentary answer show that of the 21.9 million cars that will be on British roads by 2010/11, 43 per cent - or 9.4 million - will pay higher VED in real terms than they do now.

Another 39 per cent - 8.4 million - will be left no better off. Just 18 per cent - 4.1 million - will actually benefit.

Of the 9.4 million who will be worse off, 1.18 million motorists will be dragged into the highest two tax bands, where the annual cost is upwards of £400.

How bad is it? Well, even Greenpeace is saying the scheme gives "green" taxes a bad name. Just a quick prediction here. The scheme will get changed before it take effect and Gordon Brown will be gainfully unemployed when he next faces the voters.

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  By martian, Thursday, 10 July , 2008 @ 2:04 pm

  And he started out so well…………………….

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