Motoring Taxation

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Thu 31 May 2012 10:38
Motoring Taxation - hillman

It's the practice of politicians to 'leak' something to test out public reaction to a topic. Then, if the reaction isn't too condemnatory, introduce it. Otherwise, say that it's nonsense. Judging by the comments following the article they've got their answer.

http://www.telegraph.co.uk/motoring/green-motoring/9301269/Drivers-punished-for-going-green.html#disqus_thread

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Thu 31 May 2012 12:49
Motoring Taxation - unthrottled

As someone on the wrong end of the VED rating, I think the treasury are right on this. Taxing a vehicle on its theoretical fuel economy as opposed to its actual consumption is utterly illogical, Virtually everyone I know pays less road tax than I do, yet most do not achieve better fuel economy. The biggest factor in green motoring is not technology, but the nut behind the wheel. Fuel duty encourages fuel efficiency, VED does not.

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Thu 31 May 2012 14:30
Motoring Taxation - daveyjp

Hidden in the Budget was a sentence about rebalancing the contribution of VED - this week the Chancellor has created a £100m+ black hole he needs to fill.

I could never see the point of zero taxation - it costs HMRC money as it needs processing.

Edited by daveyjp on 31/05/2012 at 14:30

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Thu 31 May 2012 14:58
Motoring Taxation - unthrottled

Just wait for the howls of protest when the chancellor starts trying to tax plug in-hybrids that have, hitherto, been filling up on tax-free domestic electricity. Scrap VED and put the same duty on all road fuels. This is entirely fair and ensures that the best solutions come to the fore, rather than the most tax efective solutions.

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Thu 31 May 2012 14:58
Motoring Taxation - Armitage Shanks {p}

I thought that a car's tax rating was based on a highly artifical road test to measure emissions -nothing to do fuel consumption. Hence the Fiat 500 TwinAir - Zero tax (SFAIK) and barely gets 40 mpg if driven fast

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Thu 31 May 2012 16:17
Motoring Taxation - Dabooka

Well it doesn't allow for mileage done does it? My wife's Note has a far smaller VED than mine (I think mine is about £250), but she does 3 times the annual mileage. Who does the most damage? Who causes the most CO2?

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Thu 31 May 2012 18:04
Motoring Taxation - Bobbin Threadbare

Well it doesn't allow for mileage done does it? My wife's Note has a far smaller VED than mine (I think mine is about £250), but she does 3 times the annual mileage. Who does the most damage? Who causes the most CO2?

Precisely.....! But if they taxed based on mileage we'd all have to have those black boxes in our cars. You can't win!

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Thu 31 May 2012 18:45
Motoring Taxation - unthrottled

But if they taxed based on mileage we'd all have to have those black boxes in our cars. You can't win!

Rubbish. Put the total sum raIsed by VED on fuel duty. Then you pay tax on what you actually use.

VED is a stupid tax since it influences your choice of car (which is not in itself important), but not how you drive it-which is.

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Thu 31 May 2012 19:21
Motoring Taxation - Bobbin Threadbare

Rubbish. Put the total sum raIsed by VED on fuel duty. Then you pay tax on what you actually use.

:-P

That's a change to the system though - I was making the assumption that everything stays the same and you still buy a tax disc for your car window. So nerr.

Isn't VED implied in French fuel prices? They don't go to the postie and buy a tax disc?

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Thu 31 May 2012 19:30
Motoring Taxation - unthrottled

No. You get a sticker from your insurance company to prove that the car is insured. I hate to say it, but the French position is more logical.

The aim of VED is supposed to be twofold-to raise treasury revenue and to reduce consumption. It inefficiently does the former but not the latter.

Fuel duty costs nothing to collect and is difficult to evade, but possible to avoid. All the more complex alternatives simply create loopholes or perverse incentives.

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Thu 31 May 2012 15:43
Motoring Taxation - barney100
They are going to get your hard earned one way or another but we would moan if there was no nhs or schools etc etc.
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Thu 31 May 2012 22:14
Motoring Taxation - Carole4X4
I disagree with adding VED to the price of fuel. Fuel is highly taxed and highly priced as it is, as a disabled driver I receive free VED on my mobility vehicle which is essential to give me some sort of independence. If that VED cost is added to fuel it will mean that I may as well give up the mobility vehicle as if the cost of fuel increases then I wouldn't be able to afford to run the car. This then means that I would become housebound as publi transport is not a viable option

There are many more disabled people that this would affect and cause an awful lot of people to lose the independence granted to them by the Motobility scheme.

Also what about classic cars, that are VED exempt, this would affect them too.


I think the system where we pay for a VED disc has its flaws but is still the fairest system.
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Thu 31 May 2012 22:26
Motoring Taxation - unthrottled

Carole,

You have a new Quashqai-which followed a nearly new Megane-so you can't really argue that you're a marginal motorist who'd be driven off the road for the cost of a tax disc. The average cost of a tax disc could easily be added to the Disability Living Allowance.

The VED exemption applies only to vehicles built before 1973 and is being allowed to whither on the vine.

I'm talking about a revenue neutral change. Yes, fuel is highly taxed, but the cost of a tax disc is unfair on low mileage mortorists. Low mileage motorists subsidise high milers with VED, which is rather perverse for a measure that is supposed to encourage 'green' motoring.

Fuel duty is a pay as you scheme which is much easie for marginal motorists to cope with since they are not hit with a large bill every 6/12 months and they can take easy steps to reduce their fuel bill which they cannot with VED.

VED is arbitrary, unfair, costly to administer, and hits the poor the hardest.

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Fri 1 Jun 2012 02:45
Motoring Taxation - balleballe

As a disabled driver you may have been receiving free VED; but I dont think this should ever have been the case in all honesty.

A one year tax disk for a newish car would be sub £200 - usually a lot lower if a new diesel or small petrol. I think it is fair to expect a motability individual to pay this

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Fri 1 Jun 2012 19:01
Motoring Taxation - jamie745

I believe I said on this very forum a year ago that if we all buy these low tax, super economical cars due to being bullied by fuel tax and car tax then eventually the Government will lose money. The mere fact the Treasury seem to be surprised by this shows how we are Governed by clowns because sensible people worked this out a decade ago. High fuel tax causes less fuel to be sold so the Government receive less, so they put it up again and sell even less and the cycle continues. As for the car tax itself, again when the new system came in - and later reworked to 13 bands - it was obvious that if everybody bought a band B car the Government would later move the goalposts. Does £20 even cover the admin and printing of the tax disc itself?

On the flip side its nice to see the green argument finally collapsing. For years we were told high fuel tax/car tax etc was to encourage green behaviour, it wasnt, it never was, it was to make money. Now we're actually doing what they told us (buying economical cars) they've changed their minds about supposedly saving Johnny Polar Bear and they want their money back. The arrogance of Government to feel a god given right to the publics money is quite staggering.

The brutal fact is they could afford to put the fuel tax down if we all drove 20mpg V8's. I'd like it to be noted I own a Band M vehicle doing 27 to the gallon, therefore you should all acknowledge that I am doing my bit to bail the nation out of our financial crisis.

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