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VW ‘Cheat Device’ Cars Will Not Pay More Tax

The Government has confirmed that cars which are found to be fitted with ‘defeat devices’ will not be made to pay more road tax, despite the fact that the vehicles produce more emissions than first thought.

Road tax is calculated on the basis of engine size, fuel type and the amount of CO2 emissions produced by the car, meaning that many Volkswagen (Other OTC: VLKAF - news) , Audi (LSE: 0FG8.L - news) and Skoda drivers are on a lower rate than they should have been.

But according to Transport Secretary Patrick McLoughlin customers who bought a car affected by the defeat device scandal will not be made to make up the difference.

"Our priority is to protect the public and give them full confidence in diesel tests,” he said.

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"The Government expects VW to support owners of these vehicles already purchased in the UK and we are playing our part by ensuring no-one will end up with higher tax costs as a result of this scandal."

Volkswagen was forced to apologise last week after it was discovered that it had developed the device in order to trick emission tests in the US for some of its diesel models.

The devices are able to detect when cars are undergoing tests, and can switch the vehicle to a low emission mode in order to achieve more favourable results.

This means that many people have bought cars which are much less environmentally friendly than they had been led to believe.

Volkswagen has said 11 million cars are affected worldwide, including 5 million from its own brand, 2.1 million Audis and 1.2 million Skoda vehicles.

The company is expected to announce plans for refitting the cars to remove the device within the next week, with many customers reportedly concerned about the effect this will have on the performance of their vehicles.

The company has also suspended the sale of 4,000 cars in the UK in the wake of the revelations.

Earlier on Friday prosecutors in Paris announced that they were launching an investigation into the car manufacturer on suspician of "aggravated deception", following a similar announcement by the German authorities earlier this week.

Volkswagen's share price dropped by over 3% this morning after the news of the French investigation emerged.