The States agreed the charges as part of the annual Budget as part of a move towards emissions-based vehicle taxation, which is standard practice in many places.

‘The duty is based on a motor vehicle’s carbon dioxide emissions and those vehicles which pollute the atmosphere most pay the highest fee,’ it said. ‘One of the main differences in Guernsey is that – unlike those other places – this is just a one-off charge rather than an annual charge.’

The current top rate for the highest-emission vehicles is £690, rising to £1,500, when it said the Jersey equivalent was £3,300, and in the UK a first-year charge would be £2,720, and with ongoing charges would equate to some £5,000 over six years.

The Guernsey rates, expected to bring in close to £1m. for the States last year, had not changed for six years and registration data has shown that the current charges have not dampened demand for higher-emission vehicles.

The States said that it was a move intended to raise revenue – it expects that it may double the amount currently raised – but also with the potential to influence behaviours.

‘The new duty rates have been weighted so the lion’s share of the increases come from those vehicles that produce the most emissions. Clearly as we, along with Europe and all car manufacturers, move towards net zero, there are fewer new vehicles in the highest-emitting categories being sold. But where they are, and where they add to our carbon emissions and air pollution, they will face a proportionately higher duty.

‘We don’t expect the purchasers of new cars to welcome an increase, even a small one which is paid only as a one-off, rather than as a recurring tax. But we hope the community is able to appreciate the tensions that the island has to grapple with in managing economic and environmental pressures.’

The motor trade has expressed some disappointment about the move. Dave Beausire, chairman of Le Mont Saint Garage, said a 100% increase was ‘unbelievable’ and said he was concerned at the lack of notice given to the trade.

‘There is no bearing on reality with this increase – it should be proportionate and in line with RPI.’

Guernsey Motor Trade Association president Robert Cornelius said he was surprised to learn of the increases. He said the trade had assumed costs would rise, but were shocked at the extent of the increases, and also said the proposals were announced with no notice.

'We knew that vehicle licensing costs were being updated in the Budget, but no one had said anything until it was announced,’ he said.

‘We weren’t surprised that the levels had increased, it was just a surprise that some of the categories had more than doubled.’

Cars:

Band 1 – £0 to £50

Band 2 – £150 to £185

Band 3 – £285 to £570

Band 4 – £420 to £840

Band 5 – £555 to £1110

Band 6 – £690 to £1500

Motorcycles:

Band 1 (new) – £0 to £25

Band 2 – £0 to £50

Band 3 – remains at £100

THE updated duties apply to all vehicles – new or second-hand – being registered in Guernsey for the first time, and increases according to the CO2 emissions or engine size.

Previously some low-emission vehicles were exempt from the charges, but all vehicles will now be subject to a charge of at least £25 for motorcycles or £50 for all other vehicles, to account for their increased market share. Exemptions only apply to vehicles over 30 years old, and disability vehicles.

It is anticipated that the new rates will double the revenue raised to about £1.9m., in real terms, an increase of about £700,000 a year.

The Worldwide Harmonised Light Vehicle Test Procedure will be used to measure CO2 emissions for new or imported vehicles where available, for a more accurate measure of the environmental impact of a vehicle. Using this method will align Guernsey with other jurisdictions and update the way that CO2 emissions are measured.