Buyers of the most fuel-hungry vehicles must pay a showroom tax of nearly £1,000 from 2010 after high-emission cars were targeted in a recent overhaul of the UK road tax regime. Purchasers of more environmentally friendly cars will pay no tax in the first year. Vehicle excise duty for new 4X4s and sports cars will more than double to £950, while some family cars will also be hit with a first-year levy of £750. The new tax regime is expected to reduce CO2 emissions from motor vehicles by less than 1%. The cost of running a high-powered car will be steep even after the first year's ownership, with the tax rate dropping to £455, which is 14% higher than the current top band, G. The new regime was announced in a review of vehicle excise duty that expands the regime by six bands to 13 from next year, creating a top M band for the most polluting cars. Cars that emit more than 255g of CO2 per kilometre, such as the Chrysler Jeep and the Porsche Boxster, will be charged an increased top rate. Those that emit less than 130g of CO2 per kilometre, such as the Peugeot 207 and Fiat Panda, will pay a reduced standard rate from next year, ranging from zero for a VW Polo Blue-Motion to £90 for a Panda.
