Any thoughts . Given the budget changes in VED how do people feel about them : see tables below Apart from raising as much tax as possible I fail to see the logic involved in the way VED is constructed. If ever there was a need for tax reform this is it. For me VED should be based on how much you use the roads or per mile and to discourage pollution. Under the current system you could pay top rate £505 for 10000 miles pa use producing 2550000 g co2 @ 20mpg while your next door neighbour could pay £20 for 30000 miles pa use producing 3300000 g co2 @ 30 MPG Not forgetting that per mile the top band car would only use 20 miles compared to 30 miles for the same petrol tax paid So basically fuel duty frozen but VED to go up in two years time for NEW vehicles and some big hits at the top end on new registration for first year only Current vehicles tax bands stay the same At least we get two years notice but I guess some manufacturers will be annoyed especially with the premium tax based on £40000 Why £40000 price tag ? Have to think about this one ! Budget 2015: how it affects UK motorists and what the Premium Car Tax means by CAR Magazine July Budget 2015 at-a-glance: how it affects motorists Road tax overhauledVehicle excise duty will be radically changed to keep pace with the falling CO2 emissions of modern cars. Osborne claimed that over three quarters of new cars would pay no VED at all in their first year if the current system continued by 2017 as cars continued to clean up. His new system changes all that. The first year's tax for new vehicles registered after April 2017 will still be directly linked to CO2 emissions, but in subsequent years there will be just three rates: zero-emissions (free), standard (a flat rate of £140 applying to 95% of cars on the roads today) and premium (a supplement of £310 a year for cars over £40,000 list price new). The changes apply only to new vehicles registered after 2017: all existing cars on the roads will pay at today's rate, typically an average of £166. Electric cars remain tax-freeElectric vehicles won't pay any road tax at all, giving them a distinct advantage over petrol and diesel models. The Government is keen to support EVs and make Britain a hotbed of electric car tech. Premium car tax introducedBut while electric cars benefit, premium cars will suffer: the Government has spelled out a new premium car tax for new vehicles with list prices over £40,000 registered after April 2017. They will be clobbered by an additional £310 VED charge every year, and this will be based on price not emissions after the first year. This will surely spell the end of hybrid Range Rovers and the like dodging VED. Current VED table Petrol car (TC48) and diesel car (TC49) BandCO2 emission (g/km)12 months rate6 months rateAUp to 100£0.00Not availableB101-110£20.00Not availableC111-120£30.00Not availableD121-130£110.00£60.50E131-140£130.00£71.50F141-150£145.00£79.75G151-165£180.00£99.00H166-175£205.00£112.75I176-185£225.00£123.75J186-200£265.00£145.75K*201-225£290.00£159.50L226-255£490.00£269.50MOver 255£505.00£277.75*Includes cars with a CO2 figure over 225g/km but were registered before 23 March 2006.