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First registration fee to rise by 52%

Dealers and manufacturers are to be hit by a 52 per cent hike in new car tax. From January 1, the Government will increase the first registration fee on new vehicles by more than half.

That means the current £25 fee, brought in by the Driver and Vehicle Licensing Agency in 1998, will go up to £38. Originally the fee was brought in to cover DVLA administration costs for the life of the vehicle but the new increase aims to recover some of cash lost by the 1.75m drivers who fail to pay their vehicle excise duty every year.

Now vehicle manufacturers and dealers will have to change marketing and pricing materials. The Society of Motor Manufacturers and Traders and the Retail Motor Industry Federation have condemned the move.

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