Vehicle Excise Duty, like many taxes, is disproportionately costly to administer and collect.
Many have already said as much on this site. I wish to tie three popular threads together here.
VED should be scrapped and (if necessary) the lost revenue compensated by additional fuel duty.
The disc in our car windscreen should remain, and should only be issued by an insurance company on an annual basis, once they receive an MOT receipt and are satisfied themselves that it is from a genuine company.
This could additionally have a barcode on the disc that any parking enforcement officer can scan with their handheld device to ascertain whether the disc and the car are married on the DVLA data base. This would also give them an audit trail when issuing tickets.
Why is this idea important?
This idea is designed to reduce the overall costs of administration and motoring, while strengthening the enforcement against those who flout regulations.
It would remove the bureaucracy associated with tax collection. (reduced cost)
It would result in no one ever being prosecuted again for not having paid their tax. (reduced police/court/prison costs)
It would remove the absurd policy of scrapping perfectly good cars 'just to be tough' on tax evaders. (reduced absurdity and waste)
It would increase genuine MOT coverage (reduced danger on the road)
It would increase insurance coverage (reduced premiums for all)