MOTOR association AA has challenged the chancellor’s increase in Insurance Premium Tax, after 87 per cent of drivers surveyed called it unfair.
The survey reveals that almost nine out of 10 motorists believe that the tax will tempt drivers to go without insurance.
AA Insurance managing director Janet Connor said: “The tax can only lead to even greater premium increases than could otherwise be expected over coming months.
“There is no justification for this underhand and unfair tax increase.”
The AA joins insurance industry members such as the British Insurance Brokers’ Association (BIBA) in protesting against the tax hike.
Last month, BIBA released a statement heavily criticising the Insurance Premium Tax increase, rising this November from six per cent to 9.5 per cent. BIBA chief Steve White said he was “extremely disappointed” by the move.