Car tax will cost more from April, with rates for vans and motorbikes also increasing, drivers are being warned. Vehicle Excise Duty is on course to increase in line with inflation of 10.1 per cent from April 1.

Car tax must be paid on all vehicles registered in the UK. You can pay for a whole year, every six months, or monthly.

How much car tax you pay depends on when your car was registered and how much carbon CO2 it produces. There are different rates for cars registered after April 2017, as reported by the Mirror.

Read more: What was announced in the spring Budget and what it means for you

You can check how much car tax you pay on your vehicle on Gov.uk. As an example, the car tax rate for a vehicle registered from March 2001 and before April 2017 that produces 121 to 130g/km of CO2 emissions would be £135 for the year.

Some vehicles are charged £0 for car tax. But even if you don’t need to pay anything, you’ll still need to renew your vehicle every year with the DVLA.

The types of cars that don’t cost anything to be taxed include brand new vehicles that produce zero grams of CO2 emissions and have a price of less than £40,000. For cars registered between March 2001 and before April 1, you’ll pay £0 for car tax if your vehicle produces up to 100 grams of CO2 per kilometre driven.

However, there was better news for driver this week. In the Spring Budget, Chancellor Jeremy Hunt confirmed he will continue a freeze on fuel duty for the thirteenth year running. The 5p-a-litre cut in fuel duty will also remain in place for the next year – meaning no increase at the pumps.

Fuel duty is included in the price you pay for petrol, diesel and other fuels. The current rate for both petrol and diesel is 52.95p-a-litre and this rate has been frozen since 2011.

Motoring groups have welcomed Jeremy Hunt’s decision to extend the 5p per litre cut in fuel duty. It will save the average driver £100 over the next 12 months, Mr Hunt said.

AA head of roads policy Jack Cousens said: “We are pleased the Chancellor has listened to the AA and frozen fuel duty. Not only will this save drivers heavy duty pain at the pump, but it will help keep the price of goods and services down as they are mainly transported by road.”

RAC head of roads policy Nicholas Lyes said: “We welcome the Government’s decision to keep the 5p fuel duty cut in place for another 12 months. The cut has given drivers some much-needed relief in what has been the most torrid year ever at the pumps, with price records being broken even after duty was cut.

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