Not only are Canberrans going to pay more in rates, they will also be paying more to drive their car if it's not an electric vehicle.

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The ACT government is increasing the motor vehicle duty for both new and used cars deemed to be "a polluting vehicle", in the words of Treasurer Chris Steel.

The extra charges will start from February 1, 2027.

Motor vehicle duty is a tax you pay when you register a new vehicle in the ACT or transfer the rego for a used vehicle.

And, basically, the greater the emissions, the greater the duty you pay. And pay.

Higher charges are coming in early 2027 for everyone except those people who drive the most efficient EV or hybrid.

The 2026-27 budget outlook put it this way: "The government will continue to incentivise the uptake of lower emissions vehicles with an increase to motor vehicle duty taxes for categories B, C, D or unrated".

Mr Steel also said this in the wake of handing down the budget last week:

"So we've made measures to cut taxes, but we've also asked certain members of the community to pay a little bit more, and that includes people who are purchasing a polluting vehicle.

"They will be asked to pay a little bit more in stamp duty for the cost of purchasing a vehicle. Whilst we've kept registration fees as low as we can and stamp duty as low as we can for those who are purchasing zero or low or polluting vehicles, which will mean that they still pay less than NSW."

So, what does that all mean?

What's a B, C, D or unrated vehicle and how much extra are their owners going to have to pay?

And Mr........

© Canberra Times