New road tax system

So fuel would go up to, let's say for argument's sake, £1.50 per litre? That would equate to roughly £656.00 based on me doing 4000 miles per year and my car doing 41mpg (roughly) instead of paying £120 road tax per year and fuel at roughly 114.9 doing same mileage equates to £629.60 a year.
Providing I'm doing the maths correctly, it doesn't work out cheaper for me...
 
We discussed this months ago, I did the sums. 10p extra duty and we could scrap road tax. I'd vote for that.

clv101 said:
If I was in charge, I'd scrap road tax and increase fuel duty so it raised the equivalent revenue. I'd tempted to take it further and increase fuel duty to raise additional revenue to provide 'free' 3rd party insurance to everyone - a state (via fuel duty) funded 3rd party insurance scheme.
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clv101 said:
Absolutely I am suggesting duty should be higher. An extra 10p would be nice and would pay for road tax to be scrapped (approx same value, the average driver wouldn't be worse off. Anyone driving less than average miles or in a more efficient than average car would be better off). This would give a relative benefit to poorer people (for whom road tax is a bigger proportion of their wage than richer people), it would further encourage efficiency and reduced vehicle miles which in turn reduces our national trade deficit as we're a net oil importer, and would produce a genuine saving to the public purse as collecting revenue via fuel duty is way cheaper than road tax. This saving could be given as tax cuts (or credits) - targeted at poorer people.
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Ah ok, in which case lets say fuel was 135p/litre. That would equate to me paying £598.72 based on the same earlier figures which is obviously cheaper by a little bit.
 
The main downside to such a system is it hurts people that do a large number of miles and are already struggling financially, under this system their road tax expenditure will greatly increase.

The tax system will never be "fair" because people with from low income households will always oppose "fairer" taxes in terms of paying for what you use because it hurts their income more than middle and high income households.

Poll tax is a classic example, it makes sense for a tax collected for the funding of public facilities and services to be a flat rate per adult, yet was replaced with council tax which is based pretty mainly on the value of your home rather than the number of people in the property using the local councils services.
 
I had this conversation a few months ago with some family. Obviously I didn't work it out to this extent but I was suggesting that road tax should be scrapped and it be added to the price of fuel. The only person that disagreed had a Peugoet 107 :o

I'm totally for this, especially since I will be doing around 3-4k miles per year in my car for the forseeable future and because I've just had my Road Tax reminded through the post this morning!
 
Maccy said:
Ah ok, in which case lets say fuel was 135p/litre. That would equate to me paying £598.72 based on the same earlier figures which is obviously cheaper by a little bit.
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Thats still more - I already explained that the proposal would be that fuel is raised by such an amount that the average motorist doing 12k a year in a 40mpg car breaks even.

So if you do under 12k a year in a 40mpg car...
 
Eriedor said:
The main downside to such a system is it hurts people that do a large number of miles...
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Good! It's in everyone's interest not to have anyone doing a large number of miles. It's inefficient on many levels, they lose hours sitting in a car, burn stacks of imported oil, contribute to congestion, noise and air pollution etc. We need to rules of the system set such that nobody has to do large miles.
 
Very well said fox,

Car Tax is left over from an age where there was no other way for a police man to tell if your car was even vaguely legal.

I really can't imagine the car tax system is at all efficient, when you consider the cost of collecting small payments from literally millions of car owners. Especially when some don't want to pay. Some of the DVLA schemes to cut car tax avoidance cost three pounds for every one pound they recovered.

Replacing two tax collection systems with one is exactly the sort of thing the government needs to be doing.
 
clv101 said:
Good! It's in everyone's interest not to have anyone doing a large number of miles. It's inefficient on many levels, they lose hours sitting in a car, burn stacks of imported oil, contribute to congestion, noise and air pollution etc. We need to rules of the system set such that nobody has to do large miles.
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What if they work far from their home? Why force people to move?
 
I drive a 330i and only do 4000 miles per year, If your suggestion saves me money because I drive low mileage then I'm all for that.

btw isn't the new government open to change and suggestions from us 'common folk'. Could you not write in with your suggestion and perhaps, at least, get it noticed for discussion in government?
 
I quite like how despite my car being the same year as another Y plate, 2001 Accord Type R that i get bummed double because my car was registered a couple of months later and thus into the new tax bracket. I drive my car 2 days a week for work and commute the other 3 days on a bicycle. Makes sense eh?!
 
It's all well and good until you get to people who have to drive for a living. Taxi drivers, truckers etc. Unless they get some sort of subsidy, concessions etc.
 
clv101 said:
Good! It's in everyone's interest not to have anyone doing a large number of miles. It's inefficient on many levels, they lose hours sitting in a car, burn stacks of imported oil, contribute to congestion, noise and air pollution etc. We need to rules of the system set such that nobody has to do large miles.
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Sadly your ideal world is not the world which we live in. If i didnt do my 25,000 per year, someone else would, or otherwise no nationwide IT infrastructure would get implemented in this country. Local jobs are not the only jobs around, many many people are based at client sites all over the country.
 
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