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Manx motorists ‘hammered’ over vehicle tax hike, says MLC

The cost of an Isle of Man vehicle license is set to rise

The cost of an Isle of Man vehicle license is set to rise

  • by Adrian Darbyshire
 

Motorists are ‘cash cows for government’, an MLC claimed as Tynwald approved yet another hike in car tax.

Vehicle duty is set to rise by another 5 per cent from April. The £5 per vehicle surcharge for road safety initiatives, introduced in 2005, continues to be included in the overall duty but is being increased to £6 for all vehicles.

In Tynwald, the move was criticised by some in the Legislative Council.

Juan Turner said: ‘Motorists are complete cash cows for government. They are going to be hit again and they are already under severe pressure.

‘It’s another huge increase. The public are being hammered again.’

The increase will see duty for cars with engines below 1,000cc increase from £44 to £47. The rate of cars up to 1,200cc goes up from £81 to £86, those up to 1,800cc from £144 to £152, and vehicles up to 2,500cc from £203 to £214. For engines up to 3,500cc, the increase is from £319 to £336, up to 5,000cc it’s up from £377 to £397 and for engines over 5,000cc, the tax increases from £405 to £426.

Vehicles first registered after April 2010, will have car tax based on engine emissions rather than engine size.

The duty raises around £12 million per year and goes on road maintenance and improvement. Highways chiefs say the 5 per cent increase is necessary to offset a reduction in money from the Treasury.

In the UK, Chancellor George Osborne announced in his autumn statement that car tax discs will be scrapped.

 

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