Scrap VED, replace with extra fuel tax

VED is an outmoded and increasingly complex way of taxing vehicles. Millions are spent every year in administration and capturing the evaders. By putting additional tax on fuels this turns an avoidable tax into an unavoidable one since a vehicle is useless without fuel. It satisfies the classic lobby because most classics are only used occasionally and introduces a pay as you drive feature that should encourage people to drive less or switch to a more efficient model(and usually lower emissions are a by-product of this anyway). It also dispenses with the need for administration and policing since there is already a means of collecting the tax in place. ANPR cameras are everywhere, so the policing of insurance and MOT infringements is unaffected.

Why is this idea important?

VED is an outmoded and increasingly complex way of taxing vehicles. Millions are spent every year in administration and capturing the evaders. By putting additional tax on fuels this turns an avoidable tax into an unavoidable one since a vehicle is useless without fuel. It satisfies the classic lobby because most classics are only used occasionally and introduces a pay as you drive feature that should encourage people to drive less or switch to a more efficient model(and usually lower emissions are a by-product of this anyway). It also dispenses with the need for administration and policing since there is already a means of collecting the tax in place. ANPR cameras are everywhere, so the policing of insurance and MOT infringements is unaffected.

Stop charging VAT on excise duty.

Currently the British Government charge excise duty on all types of fuel.  In addition to this the British Government charge VAT on the same products and an proportion of this is charged on the Excise Duty thereby taxing a tax.  Whilst this obviously brings in a significant amount of money for HM Treasury surely it is unjust to TAX a TAX.

Why is this idea important?

Currently the British Government charge excise duty on all types of fuel.  In addition to this the British Government charge VAT on the same products and an proportion of this is charged on the Excise Duty thereby taxing a tax.  Whilst this obviously brings in a significant amount of money for HM Treasury surely it is unjust to TAX a TAX.

replace road tax with fuel use tax – charge fuel tax on lorries entering the uk.

The extreme cost of collecting road tax can be abolished by a small increase in fuel tax. The savings can offset the tax increase. Every one would pay according to their usage. The heavy and insfficient would pay much more than the frugal.. This would remove the nonsence of tax bands etc.

Don't worry about electric cars just yet because tax on electricity is currently adequate and will certainly increase to replace any fuel revenue decline.

Also, lorries entering the uk would have to declare their fuel content and pay an appropiate tax. This would remove the advantage to foreign hauliers who avoid paying to repair our roads. It would  raise revenue according to the damage these lorries cause.

This is so simple and win-win.

Why is this idea important?

The extreme cost of collecting road tax can be abolished by a small increase in fuel tax. The savings can offset the tax increase. Every one would pay according to their usage. The heavy and insfficient would pay much more than the frugal.. This would remove the nonsence of tax bands etc.

Don't worry about electric cars just yet because tax on electricity is currently adequate and will certainly increase to replace any fuel revenue decline.

Also, lorries entering the uk would have to declare their fuel content and pay an appropiate tax. This would remove the advantage to foreign hauliers who avoid paying to repair our roads. It would  raise revenue according to the damage these lorries cause.

This is so simple and win-win.

Allow smallcraft including commercial and recreational craft (yachts etc) to use red diesel

Allow smallcraft including recreational craft (yachts etc) to use red diesel.  Fuel tax helps pay for the road network and is charged to road users.   It is also now charged for yachts and small boats – but they do not use the roads!  

Red diesel has not had fuel tax paid on it.  It is used by agricultural vehicles and large ships / fishing craft that do not use the road system.  

Why is this idea important?

Allow smallcraft including recreational craft (yachts etc) to use red diesel.  Fuel tax helps pay for the road network and is charged to road users.   It is also now charged for yachts and small boats – but they do not use the roads!  

Red diesel has not had fuel tax paid on it.  It is used by agricultural vehicles and large ships / fishing craft that do not use the road system.  

ABOLISH ROAD TAX –

Road tax is expensive.

Tax on Petrol/diesel is a rip off and we pay more in tax than we do for the fuel

Insurance for cars is excessive, and young drivers can pay over £4,000 for insurance.

MOT is a legal requirement for vehicles over 3 years old.

 

MY PROPOSAL

SCARP Road Tax, Decrease fuel tax.  change insurance to be non-compulsary BUT

Introduce a new scheme – covering all vehicles over 1 year old by

Amending the MOT scheme – increase the cost to £150.00 per vehicle over 1 year old and this must be refreshed when the vehicle changes name.  This cost would include the MOT as it stands for vehicles over 3 years and a certificate of Road worthyness for vehicles over 1 year old, but included in the price includes a contribution towards road tax and minimum third party insurance.

Drivers can elect to carry their own insurance, but this eliminates all those drivers who don't have insurance.  A coloured disc will be displayed in the windscreen as it is now with the tax disc along with a document confirming name of owner, car details and covering thrid part insurance run by central governement.

This scheme is run in countries such a New Zealand.

The fuel duty should be cut and fall in light with the current VAT rate of 17.5% rather than the 60% or thereabout that it is at the moment.  This would encourange drivers to maintain their cars and elect for this scheme.

Young drivers cannot afford to insure their cars and don't this way all cars on the road are insured.

This scheme could also be extended to cover caravans

Why is this idea important?

Road tax is expensive.

Tax on Petrol/diesel is a rip off and we pay more in tax than we do for the fuel

Insurance for cars is excessive, and young drivers can pay over £4,000 for insurance.

MOT is a legal requirement for vehicles over 3 years old.

 

MY PROPOSAL

SCARP Road Tax, Decrease fuel tax.  change insurance to be non-compulsary BUT

Introduce a new scheme – covering all vehicles over 1 year old by

Amending the MOT scheme – increase the cost to £150.00 per vehicle over 1 year old and this must be refreshed when the vehicle changes name.  This cost would include the MOT as it stands for vehicles over 3 years and a certificate of Road worthyness for vehicles over 1 year old, but included in the price includes a contribution towards road tax and minimum third party insurance.

Drivers can elect to carry their own insurance, but this eliminates all those drivers who don't have insurance.  A coloured disc will be displayed in the windscreen as it is now with the tax disc along with a document confirming name of owner, car details and covering thrid part insurance run by central governement.

This scheme is run in countries such a New Zealand.

The fuel duty should be cut and fall in light with the current VAT rate of 17.5% rather than the 60% or thereabout that it is at the moment.  This would encourange drivers to maintain their cars and elect for this scheme.

Young drivers cannot afford to insure their cars and don't this way all cars on the road are insured.

This scheme could also be extended to cover caravans