The government has released its own estimates of the impact its new vehicle excise duty laws will have.
Just under one third of all drivers will face a higher road tax bill than before due to government reforms, ministers have admitted in new official estimates.
Around nine million motorists are to have the tax burdens increased next year due to changes in vehicle excise duty, including for 44 per cent of all vehicles produced after 2001. The reforms also see the hardest-hit motorists pay £245 more per year.
Treasury minister Angela Eagle pointed out that the change in policy was decided on for environmental reasons - with the biggest rises in duty to affect those motorists who drive the most highly-polluting cars - and that the tax would actually fall for 33 per cent of people. Nevertheless, the release of the official estimates has led to fierce criticism from drivers' groups and the Conservatives.
Shadow chancellor George Osborne said that the policy "gives green taxes a bad name", while AA president Edmund King said that the estimates "confirm our worst fears" and are "politically dangerous". He added: "This is not a green tax but a mean tax that will hit millions of hard-up families."
It is estimated that the new car tax policy will net the government around £1 billion extra per year by 2011.
