Drivers face annual £132 car tax hike for first time in 18 years

Guernsey plans to reform vehicle taxation with an average annual charge of 132 pounds, the first rise in 18 years. The package also cuts fuel duty by 25%, expected to save about 130-140 pounds per private vehicle annually. An annual weight- and emission-based tax for all vehicles, including electric and hybrid, will range from 25 to 280 pounds, with a median around 132, and a surcharge for high-value vehicles above 50,000 pounds starting at 2,500 pounds added to vehicle first registration duty. Officials say the reform will raise about 59 million pounds a year, split as 20 million in spending reductions and 39 million in additional revenue. The plan is designed with flexibility to adjust future revenue from offshore wind, Pillar 2 and growth, depending on the broader economic picture. The changes are framed as a measured response to worsening finances, intended to protect essential services while stabilising the island’s finances.