With the UK government having revised its car tax system car lovers will now have to pay a lot more than what they could have expected. The UK government claims that the new car tax prices have been designed to encourage people to use environmental friendly vehicles. The reformed system will reward the drivers of green cars by excluding them from paying any taxes. They will be awarded for the fact that they are using green cars and are initiating an effort to keep the environment clean. In addition they will also be using the renewable sources of energy. On the other hand, all those using petrol or diesel cars will have to pay a lot more for the fact that they will be polluting the environment.

Under the new car tax system the tax bands have been increased from seven to thirteen. Buyers of cars which fall into revised car tax bands A, B, C and D will pay nothing in the first year, with bands B to D attracting a £20 to £95 rate thereafter. Similarly, the buyers of cars falling into revised tax bands E to G will pay £115 to £155 from purchase. Vehicles that will fall under band B and H and above will pay a premium rate of car tax, ranging from £250 to £950 in the first year, with future years payments dropping to between £180 to £455. In addition, a tax cut for drivers of alternative-fuel cars in 2009, will range from £15 to £20, however from 2010 this discount will be a £10 flat rate.

Read full story here: http://cartaxguide.wordpress.com/2010/10/21/increased-car-tax-prices-an-initiative-to-save-the-environment/