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.
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.
"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.
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.
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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The rumours sparked protests and counter-protests, with police drafted to the scene on Tuesday, despite the hotel currently sitting empty. Demonstrators had also seized on online claims that migrants were being housed at £400 a night, when the rooms infact cost £81 per night and the government will not be charged until migrants move in. 'Asylum seekers are not being removed from The Bell Hotel in Epping,' a Home Office spokesman said. Reform MP Lee Anderson was accused of further stoking division by attending the protest outside the Canary Wharf hotel and warning of 'an influx of illegal migrants'. 'What are we playing at?' he asked on social media. He posted a clip in which he said he is 'absolutely furious' and that families across the UK would not be able to afford a night's stay in the hotel. Care4Calais head of advocacy Charlotte Khan hit out at Mr Anderson for his video. She said: 'The truth is, MPs should be more responsible than to sow division and hatred in our communities.' 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