Tax discs to be scrapped (fee remains)

[Wile E. Coyote]

http://www.independent.co.uk/life-style/motoring/motoring-news/paper-tax-discs-for-vehicles-to-be-scrapped-the-chancellor-will-announce-in-autumn-statement-8983765.html

 

...and apparently be able to pay by DD.

 

Will hopefully make it easier for those of us who'd like to keep them taxed for say 9 months of the year (albeit not convinced it won't lead to price increases of "just £x a month").

[Norman Verona]

Why not scrap the payment as well and add, say, 4p to a litre of fuel.

[M444TTB]

About time too!

[kevip6]

Why not scrap the payment as well and add, say, 4p to a litre of fuel.

 

I agree with this. surely its the fairest way to pay for use of the roads rather than owning a car?  It'll have exactly the same effect of higher taxes for the big engines as well 

[Norman Verona]

and decriminalise those that don't pay the tax, free the police from chasing them, get tax from non-uk vehicles on out roads and reduce the civil servants collecting it and managing it. 

 

I can't think of any downside, can you?

[AdamR]

I can't think of any downside, can you?

 

Neither can I - seems like the simplest and most effective way to do it!

[Norman Verona]

There is a downside. The minister that loses 3000 civil servants from his department also loses power as in Whitehall the more Civil Servants the more power the minister wields 

[AdamR]

It suddenly makes sense...

[XTR2Turbo]

Ministers clearly want to retain the option to have a greater tax differential between cars than could be accounted for by fuel consumption.  e.g electric cars or cars that the lentil eaters don't like.

 

But remains an inefficient way of doing it.

[Norman Verona]

Electric cars wouldn't pay any tax as they do not use petrol or diesel. Low consumption vehicles will pay less than high consumption vehicles.

 

OK, the "adjustment" becomes a bit of a sledgehammer but there would always be a differential based on consumption. 

 

However whilst it may create on problem it solves another. At the moment two identical cars pay the same VED. One may do 6000 mile a year and the other 60,000 miles. Fair? Not if we are saying the VED is based on road usage. (which of course it isn't, it's just another tax)

[kevip6]

Or even if you had a 1 litre ecoboost doing 30,000 miles a year against a 5 litre V8 doing 2,000 miles a year. One is currently paying next to nothing a year and the other £500 a year. Which is doing more harm to the environment?

 

Surely that was the point in the tax grouping on CO2, to reduce the damage to the environment?

[pistonbroke]

 

 

The first vehicle taxes were introduced in 1888 and the current system of excise duties to help pay for the maintenance and construction of roads was introduced in 1920. 

Ha! Ha!  have to laugh at this     

[AdamR]

Or even if you had a 1 litre ecoboost doing 30,000 miles a year against a 5 litre V8 doing 2,000 miles a year. One is currently paying next to nothing a year and the other £500 a year. Which is doing more harm to the environment?

 

I think they'll probably both be doing about the same, in fact maybe the Ecoboost is doing more harm since it will have a couple of oil changes and wear out some tyres within that time? The Ford would also be creating more wear and tear on the roads.

[Norman Verona]

Kev, how about teh Rolls Royce doing 20,000 miles a year at 8 mpg and first registered in 1970. 

 

There are always exceptions. The fact is we have very expensive ways of collecting some taxes.

 

Look at the cost of collecting TV licences and how many don't pay it. Just add it to the council/business tax. Cost of collection is zero. Of course there are people who do not have a TV but there are relatively so few that it may be unfair but nothings perfect.

 

In France the TV licence is added to the tax on the dwelling. Those on a pension earning low (very low) income don't pay but this is calculated by the computer. France is a very strange place. For a country with a reputation (deservedly) for a huge civil service they do find the cheapest way of collecting money. They use cheques all the time (I'm not even sure where my UK cheque book is, and haven't used it for years) but have a really hassle free direct debit scheme. You just fill in your details on any recurring bill, not only utilities but any bill and they can charge your bank directly.  Ca la vie.

[Nick Algar - Competition Secretary]

 

I can't think of any downside, can you?

 

I agree with significantly reducing the tax, but I worry that if we scrap it altogether then there is nothing to make sure you have changed the registration details of your vehicle and therefore keep track of who owns the car.

 

Unfortunately I speak from experience of selling a car and having to hassle of getting DVLA to accept that I had sold it when I said and to stop sending me the parking / speeding fines.

 

The current system where it is the sellers responsibility to fill in and post off the V5 is much better. But I worry that without the road tax incentive people won;t bother.