All drivers of petrol or diesel cars will be penalized under new tax rules from April

UK drivers who own petrol or diesel cars have been warned they should be penalized in the spring.

This is because Vehicle Excise Duty (VED) rates will increase for everyone from April 11.

Close Brothers Motor Finance spokesman Sean Kemple warned petrol and diesel owners would feel the impact more solely depending on the “type of vehicle they buy”.

READ MORE: UK drivers face £200 fine following January 29 traffic rule change

However, drivers with models that produce a lot of air pollution are expected to be the most affected, reports Manchester Evening News.

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VED rates for vehicles that produce more than 255g/km of CO2 pollution will rise to £2,365.

This will be a massive £120 increase from the current 2021 rate.

Meanwhile, drivers of cars producing 226-255g/km will see a £105 increase, with the charge for cars producing 191-225g/km increasing by £75.

Price increases will be observed on all vehicles except for those emitting less than 75 g/km of CO2.

Mr Kemple also warned of the “challenge” ahead as drivers look to switch to electric cars.

He said the government should “offset” tax revenue as more drivers started to ditch their existing petrol and diesel cars.

Speaking to Express, he said: ‘You can see the incentive from a tax point of view of road tax and in-kind benefits moving towards low-emission vehicles.

“It’s better for everyone involved, so it’s a win-win situation.

“The challenge then is how the government offsets that tax revenue against what it would have gotten from gasoline and diesel vehicles.

“What you see then are the consumers of petrol and diesel, in their opinion, I guess being penalized by the type of vehicle they are buying.

The Treasury has previously estimated it will have to fill a £40billion black hole due to the loss of VED and fuel tax rates.

The VED increase is expected to take effect on April 1, 2022.

The changes were first announced in last year’s fall budget.

HM Revenue and Customs said the hike was to ensure VED rates are increased along with the retail price index (RPI).

They said increasing VED rates in 2022 will ensure rates are “maintained in real terms.”

They said the changes will ensure motorists “a fair contribution to public finances”.

They added: “This measure will impact motorists owning a car, van or motorbike or using a motorbike trade licence.

“The increase in VED rates is in line with the RPI, which means rates will remain unchanged in real terms for vehicle owners.”

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