I propose to scrap vehicle excise duty and increase fuel duty

I like sums, so let’s do a few based on my limited knowledge of the figures involved…
Average car mileage is 10K miles.
Average car vehicle excise duty is £150.
150 / 10000 = £0.015 duty per mile
Average modern car does 10 miles to the litre.
0.015 * 10 = £0.15 duty per litre.

15p per litre wouldn’t really impact the massive fuel pump price we have at the moment.
So I propose to scrap vehicle excise duty and increase fuel duty by 15p per litre.

This would have cost savings to government including
1. Wouldn’t need to police or prosecute people for no tax
2. Wouldn’t need to post the reminders / forms in the post i.e. delivery costs
3. Wouldn’t need to administer the scheme
4. Wouldn’t need to pay a cut to the post office for taking payment etc
5. Wouldn’t need to maintain a whole heap of webpages dedicated to it

Benefits to me
1. If I do less miles I pay less duty
2. Car drivers won’t be confusing the duty with road tax, so it will help equality on the roads between vehicles and bicycles
3…. there are more I am sure.

Benefits to the environment
1. Extra fuel costs makes people focus on doing less miles
2. Less paperwork and resources wasted

Small one-off costs
1. Closing the scheme
2. Changing the law
3. Retraining traffic police
4. A small number of job losses

Why did I write this post?
Lots of reasons, but mainly because I hate hearing “cyclists have no right to be on the road, they don’t pay to use the roads” come up as often as it does.

See also ipayroadtax.com, a website dedicated to the misconception about the duty.

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2 responses to “I propose to scrap vehicle excise duty and increase fuel duty

  1. I like the idea of simplification, but when I pay my car tax (£30, because it’s not one of the ones that does 10 miles / litre), I have to have proof of MOT and insurance (well, not any more because it’s on the internet), so I guess there’s a component of that in the process.

    On the general point, nothing has made people buy more fuel efficient cars and cycle/walk more than the high fuel price. I think fuel price should go up to £2 / litre with credits for people who need the car and truckers.

    • Side note on cheap tax cars: When all cars are in that tax bracket the brackets will simply change, so you’ll be paying 150 for your car soon enough.
      Back to the topic: It’s all done by computers now, we should move on from paper checks. Modern police traffic cars have the kit to detect whether a car has MOT and insurance too. Besides, the scum don’t bother with insurance, vehicle excise duty or MOT. Those without licenses don’t seem to get decent punishment either, I’ve seen those police programmes 🙂

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