Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Just got this in an email, not sure if it'd been posted?
Greener cars mean cheaper vehicle tax but that may be set to change.
Most governments have a policy of "if it moves, tax it", and that's certainly always been the case with cars.
Excise duty on road vehicles was first launched in the 1888 Budget and a new excise duty specifically for motor vehicles was introduced in 1920.
Vehicle Excise Duty (VED) is collected and enforced by the Driver and Vehicle Licensing Agency (DVLA).
It's often referred to as road tax but this is inaccurate as the money raised doesn't go towards upkeep of the roads but is diverted into central government revenues.
Money raised
Currently VED raises about £6 billion a year for the Treasury.
However, official forecasts show that is set to change because the current system and changes in consumer buying habits have led to falling revenues.
Since 2005, VED has been graduated, with higher rates for gas-guzzling cars and lower or free rates for cars with low emissions.
For example, VED for cars in top band M is £1,030 on first sale and £475 a year thereafter. This includes most Range rovers and the Porsche 911.
For mid-range cars in band H, such as some models of the Ford Focus and VW Golf, the cost is £275 in their first year and £195 in future years.
Rewards for fuel-efficiency
However, low-emission cars such as the Nissan Leaf, Toyota Prius and Ford Fiesta Econetic in band A, with no VED payment required.
With the rising cost of fuel and increased car insurance premiums, many motorists are opting for greener vehicles that cost less to fill up and have lower, or no, VED costs.
"This policy has proved successful in that motorists are increasingly buying more fuel-efficient cars," says Kieran Puffet, editor of car buying website Parkers.
"Also, manufacturers are getting better at making vehicles with low emissions so there is more choice than previously."
This is excellent from an environmental point of view, but the result is that people are paying less VED – leaving a gap in the Treasury's budget.
Government shortfall
This shortfall has been estimated by the motoring research charity the RAC Foundation as being in the region of £13 billion by 2029.
Professor Stephen Glaister, director of the RAC Foundation, "The irony is that even as ministers encourage us to buy leaner, greener cars, they are forced to consider clawing back the money motorists think they will be saving."
"What the Chancellor gives with one hand he looks to take away with the other.
"People who think they will be financially better off by buying the most eco-friendly cars could be in for a shock as the government looks at ways of shoring up its falling tax revenue."
Tax reform
The government is now considering overhauling the VED system, and motoring groups and other interested parties have been invited to the Treasury to discuss the options.
These range from a pay as you drive approach, to a single tax charge on new cars at the point of sale.
In the March Budget, Chancellor George Osborne outlined plans to introduce direct debit payments for road for vehicle tax.
A spokesperson for the Treasury insisted that there are "no firm plans" for changes in vehicle tax rates.
But Sue Robinson, director of the Retail Motor Industry (RMI), says: "The government has indicated that it will look to review and reform VED as revenues fall due to consumers driving more fuel efficient vehicles.
Uncertainty
"What this reform will look like is difficult to predict but may be related to road usage, using factors such as mileage or peak time use.
"It is also possible that the government will slightly adjust the current system and increase VED based on carbon emissions and other environmental factors."
This uncertainty is likely to be particularly difficult for motorists thinking of buying a new car and wanting to know what their future costs will be.
Professor Stephen Glaister says: "Buying a car is a big deal for drivers. They can do without constant changes to tax which could alter their purchasing decisions.
"If nothing else, there needs to be certainty about motoring taxation."
[Edited on 18-06-2012 by Colin]
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
Put it on fuel.
|
LeeM
Member
Registered: 26th Sep 05
Location: Liverpool
User status: Offline
|
theyve probably lost a load from people who have sorned uninsured cars. mine was taxed but because its uninsured and off the road i had to sorn it and was forced to claim a refund when i was happy for it to be sat there taxed ready to be used whenever.
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Would think it makes a whole load of sense wouldn't you!! Penny a ltr raise and scrap the tax disc!
|
timmsy21
Member
Registered: 31st May 12
Location: Eastbourne, East Sussex
User status: Offline
|
Thing is it wont just be a penny a ltr, the problem is fuel prices have more than doubled in the last 10 years already, fair enough prices have to rise but fuel prices are already ridiculous.
Road tax should just be that, anything that uses the road gets taxed, simples. should of just used the old way of taxing imo.
Go to somewhere like america and fuel prices dont seem to have changed much in that time. they must have another way of creating revenue for the up keep of roads.
A while back i heard something about road privatisation, Personally i dont think its a bad plan at all 
From what i've seen over here in Ireland and on the continent roads with tolls are far better than UK roads fact!
The other issue is like someone else said in a different topic, the money that is made isn't always put into the 'up keep' os the roads but just to put in annoying speed bumps etc! now while i understand why this is done at least if they are going to tax people then they could at least fix the bloody roads first
Anyhow rant over
|
RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
|
Hovercraft - we can't find a reason as to why you can't use one on a public highway (apart from public Nuisance maybe or wreckless endangerment) - it doesn't have wheels so isn't classed as a vehicle etc. so as far as I can see, no reason to tax it
[Edited on 19-06-2012 by LiVe LeE]
|
Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
|
Pre tax beetle with a porka engine. Done.
|
pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
|
Tolls roads here? FFS we pay enough in tax, insurance and petrol not to be putting another £3 in a toll machine every time we want to pop down the M4. Rediculous idea.
|
BYRON
Member
Registered: 1st Jun 04
User status: Offline
|
Well publisced topic within the car industry and no surprise that the government are looking to recoup lost revenue.
|
pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
|
Shouldn't have shot themselves in the foot with the £0, £20 and £30 tax band then should they? What did they expect?
|
Fonz
Premium Member
Registered: 12th May 06
Location: Newbury, Berks
User status: Offline
|
quote:
Originally posted by BYRON
Well publisced topic within the car industry and no surprise that the government are looking to recoup lost revenue.
seconded
i was at a lecture with the IET and IMechE at Reading university 6 weeks ago or more and the topic was exactly this debate - what is the future of the motor car and at what cost
|
