Car tax hikes 'will deal motorists financial blow'

Government plans to increase the car tax bills of nine million motorists will cost British drivers an extra £25 a year on average, it has been claimed.

According to price comparison website uSwitch.com, it will not only be drivers of 'gas guzzlers' who are hit in the pocket, as owners of popular cars like the Vauxhall Vectra can expect a hike of £90 per year in their road tax bill between 2009 and 2010.

Insurance expert at the firm Ashton Berkhauer said that drivers of older cars can expect to pay road tax of as much as 18 per cent of their vehicle's value.

He continued: "Increased road tax is another bitter pill for motorists who are already forking out an extra £18 every time they fill their tanks at the pumps."

Mr Berkhauer added that motorists are being forced to think carefully about when, where or even if they use their cars as a result of spiralling costs.

Earlier this week, British business and motor industry leaders called on the government to acknowledge the impact of rising fuel prices and scrap the 2p per litre fuel duty increase planned for October.
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