Budget Introduces SUV Tax?

UK chancellor of the exchequer, Gordon Brown has raised vehicle excise duty on the most polluting vehicles to £210. Media sources have widely touted the increase as a tax on 4x4s and SUVs. However, according to the government only 1 per cent of vehicles will be affected and therefore the impact on the thriving 4×4/SUV sector (187,000 sold in 2005) will perhaps not be too severe. In an attempt to encourage cleaner vehicles Gordon Brown used his 10th budget speech to announce that the “cleanest” cars would pay no duty and that low emissions vehicles would see duty reduced from £75 to £40.