The new system, which is set to be introduced in the UK, will replace the current system and is expected to significantly increase the cost of car ownership. The changes are part of a broader effort to encourage the use of public transportation and reduce carbon emissions. The new system will be based on a vehicle’s carbon dioxide emissions, with higher emissions resulting in higher taxes. For example, a car that emits 150g of CO2 per kilometer will be taxed at a higher rate than a car that emits 100g of CO2 per kilometer. This is a significant increase from the current system, which is based on the car’s value and age.

The government has announced that from April 2025, electric vehicles will be subject to the same road tax as conventional vehicles. This change is part of a broader strategy to encourage the adoption of electric vehicles and reduce carbon emissions. The move is expected to raise significant revenue, which will be reinvested into further electric vehicle infrastructure and incentives.

This change is expected to affect approximately 1.5 million vehicles, which will see a reduction in their annual VED payments. The government has introduced this measure to encourage the purchase of more environmentally friendly vehicles. The first band, which is currently £140, will now be the starting point for all vehicles, including those previously in band A.

– “the initial cost” is rephrased as “the initial expense”. – “the new vehicle taxes” is rephrased as “the recently introduced vehicle tax obligations”.