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Car Insurance - AA criticises 'showroom tax' - 14/03/2008

  
 
  The government's plans to tax purchasers of highly-polluting new cars in this week's Budget has been criticised by the AA and the Conservative party.

A one off 'showroom tax' of £950 is to be levied from the buyers - and road rates are also to be raised for them.

The proposals are to affect cars producing more than 255g of carbon per kilometre on the road - a group which will include many 4x4s and large estate cars.

Speaking to the newspaper, AA spokesman Edmund King commented: "The increase in vehicle excise duty for high-polluting vehicles will catch out many motorists.

"Drivers want cleaner, greener cars but we must ensure that the proposals are not just a green smokescreen for allowing the Treasury or local authorities to take more cash from the motorist."

Shadow chancellor George Osbourne was also critical of the 'showroom tax', saying that "millions of families" would be left out of pocket as a result of the levy.

"This is a bad news Budget which kicks Britain's families when they're down - the cost of living is already rising fast and the government has added to it with stealth taxes on cars," he added.

The government stands to earn an extra £735 million per year through the charges, the Daily Telegraph reports.
 
     
 
 
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