article_snippet: ‘is the primary reason that we now pay nearly 70 per cent in tax on every litre of fuel we buy at the pumps’.
article_snippet: The tax levied on the majority of company cars will be increased by three percentage points in 2019-20.
article_snippet: The rate for environmentally-friendly vehicles will also rise –
article_snippet: The Government’s avowed aim of the changing tax rates for the ‘benefit in kind’ is to push company car drivers into greener vehicles – such as fully electric or hybrid cars, which carry a smaller tax burden.
article_snippet: The tax on these so-called ‘ultra-low-emissions vehicles – or ULEVs – is still rising too.
article_snippet: George Osborne told MPs: ‘To encourage a new generation of low-emission vehicles we will increase MPs company car tax more slowly than previously planned.
article_snippet: It’s effectively a retrospective tax on cars,’ he said.
article_snippet: Having previously introduced an annual two-percentage-point increase in the rate of company car benefit in kind to 2018/19, today George Osborne announced a further annual hike of three percentage points from 2019/20.
article_snippet: This announcement will see the benefit in kind rate increase by nearly 50 per cent in the period to 2019/20.
article_snippet: For example, the benefit in kind rate on [a car emitting 100 grams of carbon per kilometre] will increase from 19 per cent next tax year to 28 per cent by 2019/20.
article_snippet: Someone with a Golf GTI worth £28,000 will also see Someone with a Golf GTI worth £28,000 tax increase by £1,008, to a total of £3,472.
article_snippet: However, taxes on green cars mean the driver of a top-selling £28,304 Mitsubishi Outlander hybrid will also see taxes on green cars company car tax treble – rising by £1,245 to £1,811 a year.
article_snippet: Tax on a £32,000 Volkswagen Golf GTE hybrid will rise by £1,408 to £2,028 by 2019-20.