Car tax disc to be axed after 93 years

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siadwell

Guru
Location
Surrey
The tax disc to show motorists have paid vehicle excise duty is to be replaced with an electronic system, Chancellor George Osborne is to announce in his Autumn Statement.

http://www.bbc.co.uk/news/uk-politics-25223631

I notice they manage to avoid calling it "road tax". In fact, there's a snippet from Hansard when vehicle tax was introduced in 1888 which shows how the principle behind the tax:

Chancellor George Goschen: Apart from the Carriage Tax, which is a tax mainly on the more luxurious carriages - carriages, used for pleasure - there is at present no tax on any other vehicles, however much they may destroy the roads.
We propose to put a duty of £1 a-year upon every vehicle exceeding 10 cwt. in weight, a very moderate limit to take.
Members will acknowledge that the principle that all those who use the roads should pay for them, and should pay in some proportion to the wear and tear that they cause, is just. But I have not yet exhausted the subject. We propose, also, to put a very small Wheel Tax upon every vehicle.
 

davefb

Guru
the whole article they managed to avoid using the incorrect phrase... so finally the wheel turns, the point is made..


when the disc gets abolished :smile:
 

400bhp

Guru
Scrap the whole thing and stick it onto the cost of petrol. Will eliminate tax dodgers and save a fortune in admin. Let those that cause the most pollution by driving the most pay the most. The more efficient the car and the more efficiently it is driven the less petrol (therefore tax) is paid.

Sticking it on petrol makes the revenue generated from VED more variable.
 

numbnuts

Legendary Member
Scrap the whole thing and stick it onto the cost of petrol. Will eliminate tax dodgers and save a fortune in admin. Let those that cause the most pollution by driving the most pay the most. The more efficient the car and the more efficiently it is driven the less petrol (therefore tax) is paid.
I would love it to go on fuel as I only drive about 1000 miles a year.
 
Sticking it on petrol makes the revenue generated from VED more variable.
Absolutely correct. But, it will stop tax dodgers (apart form those dedicated enough to convert to making their own petrol from chipfat!) and charge those that use use it the most to pay the most. I am sure analysts can look at yearly petrol consumption and make it work.

If there's a drop in car useage, then the drop in petrol tax would be offset by the savings of less car emissions.
 

classic33

Leg End Member
Would it see an increase in "make offs" or "bilking" though!
 

classic33

Leg End Member
Garages I see often have a pre-pay only option during certain hours which may get extended if the problem increases.
True. The number of such incidents locally is on the increase as more pressure is put on them to have a valid VED disc though.
 

albion

Guru
Location
South Tyneside
"The Treasury said it showed government was moving "into the modern age"."

Are they bonkers?
Surely electronically tagging the disc on display would massively cut fraud.
 

zimzum42

Legendary Member
I would love it to go on fuel as I only drive about 1000 miles a year.
I think this is a good reason to keep it as it is, the more it goes up the more low mileage car owners may think it's time to give up their motor and join car clubs etc... Fewer cars in existence!
 

Paul99

Über Member
Absolutely correct. But, it will stop tax dodgers (apart form those dedicated enough to convert to making their own petrol from chipfat!) and charge those that use use it the most to pay the most. I am sure analysts can look at yearly petrol consumption and make it work.

If there's a drop in car useage, then the drop in petrol tax would be offset by the savings of less car emissions.
Or an increase in people using red diesel.
 

400bhp

Guru
If there's a drop in car useage, then the drop in petrol tax would be offset by the savings of less car emissions.

But that's not monetary.

The govt needs to raise a certain amount of revenue. If that's not coming from VED it will come from somewhere else.
 
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