I suggest that we scrap road tax by increasing the rate of insurance premium tax on motor insurance.
This way, the tax paid would be directly linked to the premium paid. As those drivers with high performance cars generally pay a higher insurance premium the amount of tax paid would generally be higher. Similarly, inexperienced drivers and those drivers with convictions pay higher premiums. These drivers are more likely to be involved in accidents which, in turn, result in a drain of the Government coffers – police, ambulance, hospitals, repairs to road signs, barriers etc; therefore, the amount they pay into the central pot would be directly linked to the risks they present to Society.
It is now possible for the police to identify from a central database whether a vehicle is insured or not and, therefore, there would no longer a need to retain a separate road tax database. To enable traffic wardens to spot evaders, simply require the insurance companies to issue an insurance disc in a similar format to the existing disc.
Why is this idea important?
At a time when we are looking to reduce Government expenditure, this would enable many jobs to be removed at DVLS and reduce the costs incurred by processing tax disc applications in Post Offices.
Insurance companies already have in place processes for collecting IPT and they are required to issue a Certificate of Insurance.
This is a win-win… little additional cost for the insurance companies, tax directly linked to emissions and risks presented to society and costs reductions and less bureaucracy for the Govt and drivers alike.