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New car tax could discourage Young Drivers

Thu, 23 Mar 2006

Young Drivers looking to buy a new car could find they have less spending money following Gordon Brown's introduction of higher car tax rates.

The recent budget revealed that cars will be taxed on the basis of their carbon emission levels. Whilst cars that emit less than 100g per kilometre will not have to pay any car tax, vehicles which produce over 226g per km could be subjected to an annual charge of £210.

Vehicles that will be covered under the new higher rate of tax include so-called 'Chelsea tractors' - 4x4s and other off-road vehicles which actually rarely go off-road.

The government hope that the new charges will give Young Drivers added incentives to consider opting for a green car. However, recent research conducted by the AA found that many motorists prefer their vehicle to offer practical but high performance rather than eco-friendly credentials.

This means that Young Drivers will have to find more money to cover their motoring costs or shop around to offset the increases against more competitive insurance premiums.


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