Abolish the fixed annual car tax/Road Fund Licence and replace it with additional fuel duty.  This way the people who drive the most pay the most tax.

Why is this idea important?

£160 car tax per year, 12000 miles, average useage at 35 miles per gallon would add 10p to a ltr of fuel.  Anyone who drives less than 12000 miles pays less, anyone with a more fuel efficient car pays less.  Helps the less well off and encourages people to drive fuel efficient cars.

It is also virtually impossible to not pay the tax as to move the car you must have fuel. At the moment you can drive without purchasing a tax disc. 

The government can save the cost of administration, which I suspect is significant.

3 Replies to “Abolish Car Tax and put on Fuel”

  1. This is a very good idea . It probably should be brought in gradually rather than in one fell swoop.

  2. Totally Agree. Bring it in! Road Hauliers would probably whinge though – but then they always do…

  3. When vat / tax on fuel ,was first introduced in this country , it was on the pretext that road licence tax would be dropped ! Once fuel tax was fully introduced and runing … So please tell me why after forty plus years road vehicle tax is still implimented as well as vat on fuel ?

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