Electric vehicle owners will have to pay for first time
Motorists will have to pay higher vehicle duty from April - the first rise for three years.
For the first time owners of electric vehicles will have to pay road tax too.
If Tynwald agrees, at its March sitting, the rates will rise by 10 per cent across most categories of vehicles.
The minimum annual charge will be £65 which will also apply to all electric vehicles.
The Department of Infrastructure has also unveiled plans to allow people to pay for six months tax.
However this will be half the annual fee plus a £6 charge.
Minister Chris Thomas said the changes to the Vehicle Duty Order 2023 would ensure the correct amount is raised to maintain and improve the highway network.
He added: "Valuable engagement has taken place in preparing the Order and to raise fees across every category.
"I’m sure six-month payments will be welcomed by many in the Island and the team is now working towards introducing direct debits as an additional payment option.
"While fees are being introduced for electric vehicles it is important to highlight the department’s commitment to restricting the registration of higher polluting cars and vans through separate legislation that will be brought forward in line with powers included in the Climate Change Act."
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