An increase in duty on the least fuel-efficient cars to £400 over the next 2 years.
As widely publicised in advance, the Budget included an increase in the rate of Vehicle Excise Duty (Car Tax) to £300 in 2007/08 and £400 in 2008/09 for Band G cars - the most fuel inefficient.
The rate for the green, Group B, cars will be decreased to £35 in 2007/08. VED for the middle Groups C to E will be increased by £5 per year in each of the next 3 years and for Group F will be increased by £10 in 2007/08 and then £5 in each of the next 2 years.
Fuel Duty rates will be increased by 2p per litre (ppl) from 1 October 2007 and by 2ppl and 1.84 ppl in the next two years respectively.
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