Motorcycle tax will increase by as much as 6.7% from 1 April in line with increases announced in last week’s Budget.
The VED rate for a motorcycle over 600cc will increase from £70 to £74 for 12 months, representing an increase of 5.7%. The increase is also a “double-whammy” for bikers, who saw the price of taxing the same bike increase from £66 in March 2010.
A tax disc for motorcycles between 401cc and 600cc has increased from £50 to £53, an increase of £6, whilst bikes from 151cc to 400cc now cost £35 to tax for a year, an increase of 6.7% from £33. VED for bikes up to 150cc are up £1 to £16.
The increase will anger motorcyclists, particularly as VED rates for cars were left untouched by The Chancellor, George Osborne, in his budget announcement.
The emissions-based nature of car tax rates also mean that cars enjoy much more favourable rates of VED when compared to motorcycles, despite their higher CO2 emissions.
The disparity means that owners of a 400cc motorcycle will be expected to pay more to tax their vehicle than owners of certain models of the BMW 3 Series, Audi A3 and A4, Mercedes A-Class, Volkswagen Golf and Passat, Alfa Romeo Giulietta, Ford Focus, Ford C-Max and Vauxhall Astra. In one example, the owner of a Suzuki GSX650F will be expected to pay more than three and half times the rate of VED paid by the driver of a BMW 320d EfficientDynamics Saloon, which qualifies for tax of just £20 a year.
The new VED rates come into affect for any tax disc that is valid from April 1 2011.