Budget 2007: VED rates (Vehicle Excise Duty)

Greetings Comrades……

In the light of yesterday’s Budget announcement regarding Vehicle Excise Duty (VED), based on the CO2 output of a car, it is worth looking at the ramifications for Volkswagen and Audi models.

Here is the specific section of the Budget which relates to the changes in VED rates –

Click here to read more
(Point 7.78 – page 21 in the above document)

To précis:

• Band G cars (226g/km +) : Most significantly, owners of vehicles which emit 226g of carbon dioxide or more per kilometre (g/km) will now pay £300 when renewing their annual tax disc, up from £210. This represents a 42.8% increase on 2006/7 figures. From April 2008, this figure will rise to £400.

• Band B cars (101-120g/km): The rate for low-carbon band B cars will be reduced to £35 (from £40) in 2007-08, with that rate then frozen for the subsequent two years

• Bands C to E: The rates for graduated bands C-E, cars registered before 2001 and all light goods vehicles will be raised by £5 in each of the next three years;

• Band F :The rates for graduated band F will be raised by £10 in 2007-08, then £5 in each of the subsequent two years;

What does this mean for Volkswagen and Audi models?

We made a basic search on the Vehicle Certification Agency (VCA) website , on New Car Fuel Consumption and Exhaust Emissions Figures to find out.

Methodology:
A search of Band G VED by manufacturer (Audi / Volkswagen) was made in both petrol and diesel categories. The resultant data was then sorted by ascendant C02 emissions data for each model.

Please note, as per the specific guidance given on the VCA website:
- The banding system for Vehicle Excise Duty (VED), based on the CO2 output of the car, only applies to cars first registered on or after 1 March 2001.
- Also note that only new vehicles are listed on this database, i.e. those currently on the market in the UK.

BAND G Audi and Volkswagen models
Using the above criteria, click here to see the list of Audi and Volkswagen models which fall into the Band G category.

Band B Audi and Volkswagen models
Using the above criteria, the only Band B model is as follows>
VOLKSWAGEN
Polo 3 / 5 Door ( from NOV 06 Wk 45 > )
1.4 TDI (70 PS) S Diesel 119g/km
1.4 TDI (80 PS) SE Diesel 119g/km

What moves are Volkswagen making to produce more environmentally friendly cars?

The Polo BlueMotion is set to arrive in the UK this summer and features revised aerodynamics, a low kerb weight, hard compound tyres to reduce rolling resistance and lightweight wheels to maximise efficiency. These in turn are mated to an advanced three-cylinder diesel engine linked to optimised gear ratios to deliver significant gains in economy and a reduction in emissions. The result is a combined 72 mpg and only 102 g/km of CO2. The theoretical range of the Polo BlueMotion is in excess of 700-miles.
It will be possible to get a preview of the new model at the Sexy Green Car Show which is to be held at the Eden Project in Cornwall between March 30 and April 15 2007.
Similarly, the Passat BlueMotion is set to be released in Germany this Summer (*UK release date not yet confirmed) whilst the Touareg BlueTDI is to be launched in North America in 2008.

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