Petrol and diesel vehicle owners will face a dramatic increase in car tax, seeing a rise of up to ten times starting from this date.

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Car insurance specialists and breakdown professionals at the RAC indicate that drivers in this group could experience a tenfold increase in their premiums.

They verified that the increase would affect numerous hybrid vehicles equipped with both an electric battery and an internal combustion engine. 

They elaborated: "The most significant update is the tenfold rise in first-year car tax rates for vehicles that emit between 1-50g/km of CO2, which encompasses hybrids." 

"The current fee of £10 for petrol and diesel vehicles (and zero for hybrid models) will rise to £110. Most plug-in hybrid vehicles are included in this category."

“The fees for new vehicles that produce between 51-75g/km of CO2 will rise from £30 (or £20 for hybrid models) to £135.”

Labour has announced that the costs of first-year Vehicle Excise Duty (VED) will rise in 2025, as outlined in Chancellor Rachel Reeves' Autumn Budget announcement.

HM Revenue and Customs had earlier acknowledged that the rides would "broaden the gap" among petrol, diesel, and electric vehicles. 

They emphasized that this shift would bring hybrid vehicles "more in line with higher-emission cars."

They stated: “The initial rates for Vehicle Excise Duty are applicable during the first year of a car's life, at the time of registration, and these rates depend on the vehicle's emissions.” 

“Starting from April 1, 2025, the first-year rates for Vehicle Excise Duty will be revised to create a greater distinction between zero-emission vehicles, hybrid cars, and those powered by internal combustion engines.”

“Starting on April 1, 2025, vehicles with zero emissions will benefit from the lowest rate in their first year. Meanwhile, the rates for cars emitting between 1 to 50 grams of CO2 per kilometer and those emitting 51 to 75 grams per kilometer, which includes hybrids, will rise to align more closely with those of higher emitting vehicles.”