The Government have announced that from April 1st 2008, the first registration fee for new car sales will increase by 10 per cent from £50 to £55.
Over the next 12 months, new car sales are forecast to reach 2.34 million - generating a total revenue of £128 million for the Treasury. If the forecasts prove correct that is an additional £11 million raised through the increase.
Introduced in 1998, the first registration fee has doubled in the past decade from its original fee of £25.
Bob O'Donnell, Managing Director of Cape Plates (http://www.capeplates.co.uk) said about the increase "I know £5 may not be a substantial increase in the scale of things but I'm slightly worried that this may be an indicator of more car-related tax increases to come. With the budget looming we'll soon find out."
