The move is expected to generate an additional £11 million for the Treasury.
Paul Everitt, Society of Motor Manufacturer’s and Traders chief executive, said: “We hope this is not a move by the Treasury to plug holes in its finances.
“In the grand scheme an extra £11 million in tax and a fiver for new car buyers might not sound like much. However, we fear that this every-little-helps approach could be the basis for further changes to motoring taxes in March's budget.”
With new car sales forecast to reach £2.34 million over the next 12 months, total revenue from the tax will raise £128 million.
The fee was introduced in 1998. Originally, it was set at £25. However, successive rises have seen it more than double in a decade.