Vehicle excise duty "VED" Costs

Band CO2
Emission
Figure
Alternative Fuel Car Petrol
Car
Diesel
Car
(g/km)
Band A    Up to 150      £90 £100     £110     
Band B 151 to 165 £110 £120 £130
Band C 166 to 185 £130 £140 £150
Band D Over 185 £150 £155 £160

So there it is, all cars registered after February 2001 will be applicable to pay VED at the rate indicated above. 

Changes To Existing Cars
VED  From March 2001

For Vehicles in the Private/Light Goods class [PLG] registered before March 2001.  and with an engine size of less than 1200cc will be taxed at the so called  ‘Reduced Rate’ , or in other words sub 1200cc cars will fall into Band A 

PLG Vehicles registered prior to 1973 will continue to be Exempt of VED

All cars registered between 1973 and 01 march 2001 will be taxed at the top of Band D


NB:

Ignoring the fact that vehicles are already taxed in the form of Fuel taxation in a way that rewards more economical vehicles, the new system will show up some strange anomalies  as is usual with any civil service invented scheme.

A 1980 1275GT mini will pay the same VED as an V8 Diesel General Hummer, and both will pay more than that really ecologically sound 8 liter V10 Dodge Viper.

It is of course impossible to predict how fast the upper bands will spiral upwards, other than too say a conservative guess would put the rate somewhere around the far side of Very Very Steeply.


The Italian government took a similar tack  a long time back  and the result was Italian 1300cc engines with more horsepower than most European 2000cc engines.

So its highly likely the Bands will  be sidestepped by clever manufactures and with the Honda S2000 sticking out 240+ bhp,  we fully expect  expect to see  250bhp 1199cc Turbo charged, Variable Valved engines, with a 1 gallon  LPG  tank, not long after march 2001.

Either that or cars will simply be tuned to perform the required test in a low band, in the same way that motorcycles had flatspots engineered in to beat noise tests.