Fury after motorists paid more than £20billion in VAT last year just to buy and run cars
Figures show consumer spending on vehicles hit £137billion in 2024, the third highest on record.
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That generated £22.8billion in VAT for the Treasury, almost matching the £24.6billion raised from fuel duty.
But £14.9billion of that fuel duty came from diesel, which is mainly used by haulage firms — not everyday drivers.
Meanwhile, tax receipts from Vehicle Excise Duty are around £8billion a year.
AA president Edmund King said: 'There's a threat of increased motoring taxation as the Chancellor seeks to balance the books.
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"But the latest Office for National Statistics consumer spending statistics reveal the hidden tax take from private motorists.'
He added: 'The danger of ramping up motoring costs is that it affects individuals and businesses — and ultimately fuels inflation.'
His warning came as fears mounted that Chancellor Rachel Reeves is considering a fuel duty hike in her next Budget to cover the cost of reversing welfare cuts.
The Sun's Keep It Down campaign has helped freeze fuel duty since 2011 — saving drivers thousands.
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Reform UK's Richard Tice said: 'These figures show drivers are being clobbered with a stealth tax bill worth billions.
'With VAT raking in more than fuel duty, the idea of hiking it further is a disgrace. Labour must commit to freezing fuel duty — anything else would be a kick in the teeth for working people.'
Drivers forced to pay new 'Doomsday' fee every day under July plan - it's already in effect depending on where you park_1
A Treasury spokesman said: 'We extended the fuel duty cut this year, saving drivers £3billion, and we're investing £1.6billion to fix up to seven million extra potholes.'
Treasury Minister James Murray refused to comment on Labour's tax plans yesterday.
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He told Sky News: 'There's lots of speculation about lots of different tax measures, and I'm not going to get into that.'
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Motorists paid more than £20billion in VAT last year just to buy and run cars
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