Our Success is in our members who value our strength as a valued community.
Forum Stats
12093 Members
65 Forums
72251 Topics
974299 Posts
122 posts in the last 24hrs
Max Online: 7831 @ 8th Apr 2013 4:18pm
Who's Online - Click Me
15 registered (7 invisible), 229 Guests and 115 Spiders online.
Key: Admin, Global Mod, Mod
Social Media : Follow Us

(Views 7days)This Weeks Most Read
Russia 724
Art....No Cheating 597
Magnificent Stag 493
Internet Intermittent (TalkTalk?) 376
Herbert of Liverpool 353
No Christmas Tree for Liscard 295
Furniture restorer wanted 286
Liscard Man & Dog Rescued From Raging River Mersey 265
Tutankhamun 246
New General Forums
Calais man-child immigrants.
by Don_Kidick
12:04 PM
Big 40 Party
by LouLou1202
08:49 AM
by LouLou1202
07:40 AM
Art....No Cheating
by granny
21st Oct 2016 5:27pm
New Wirral History
62 Sun Inn 203 Bridge Street 203/205
10th Oct 2016 4:03pm
Buy a house in Greasby for 12s a week - in 1935
by yoller
6th Oct 2016 6:56pm
holly bank chester.
by Paternoster21
4th Oct 2016 11:13am
Product @ Abbey buildings
by dool4lit4tle
4th Oct 2016 10:41am
The Clipper Moreton.
by beanie65
2nd Oct 2016 7:08pm
Forum Tips
Photo Gallery Forums
fireworks on the Mersey last night
Hadlow train station
Topic Replies
by snowhite
Today at 02:42 AM
John Lewis Broadband
by granny
Today at 01:32 AM
No Christmas Tree for Liscard
by fish5133
Today at 01:18 AM
Magnificent Stag
by granny
Yesterday at 11:26 PM
by venice
Yesterday at 11:11 PM
by palemoon
Yesterday at 05:40 PM
Raspberry pi2 model b
by AX_125
Yesterday at 11:03 AM
Cordless 18v Jigsaw
by buddy
Yesterday at 09:18 AM
Art....No Cheating
by venice
Yesterday at 08:59 AM
M Tu W Th F Sa Su
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
Recent Posts : What's On ?
Bonfire night
by diggingdeeper
21st Oct 2016 9:59pm
Hall Hire North WIrral ??
by fish5133
18th Oct 2016 4:55pm
Topic Options
Rate This Topic
#703029 - 19th Jun 2012 10:08am Falling revenues prompt vehicle tax reform.
Clive Offline
Forum Master

Registered: 3rd Jul 2011
Posts: 2620
Loc: some where else
Greener cars mean cheaper vehicle tax but that may be set to change.

Most governments have a policy of "if it moves, tax it", and that's certainly always been the case with cars.

Excise duty on road vehicles was first launched in the 1888 Budget and a new excise duty specifically for motor vehicles was introduced in 1920.

Vehicle Excise Duty (VED) is collected and enforced by the Driver and Vehicle Licensing Agency (DVLA).

It's often referred to as road tax but this is inaccurate as the money raised doesn't go towards upkeep of the roads but is diverted into central government revenues.

Money raised
Currently VED raises about 6 billion a year for the Treasury.

However, official forecasts show that is set to change because the current system and changes in consumer buying habits have led to falling revenues.

Since 2005, VED has been graduated, with higher rates for gas-guzzling cars and lower or free rates for cars with low emissions.

For example, VED for cars in top band M is 1,030 on first Sale and 475 a year thereafter. This includes most Range rovers and the Porsche 911.

For mid-range cars in band H, such as some models of the Ford Focus and VW Golf, the cost is 275 in their first year and 195 in future years.

Rewards for fuel-efficiency
However, low-emission cars such as the Nissan Leaf, Toyota Prius and Ford Fiesta Econetic in band A, with no VED payment required.

With the rising cost of Fuel and increased car insurance premiums, many motorists are opting for greener vehicles that cost less to fill up and have lower, or no, VED costs.

"This policy has proved successful in that motorists are increasingly buying more fuel-efficient cars," says Kieran Puffet, editor of car buying website Parkers.

"Also, manufacturers are getting better at making vehicles with low emissions so there is more choice than previously."

This is excellent from an environmental point of view, but the result is that people are paying less VED leaving a gap in the Treasury's budget.

Government shortfall
This shortfall has been estimated by the motoring research charity the RAC Foundation as being in the region of 13 billion by 2029.

Professor Stephen Glaister, director of the RAC Foundation, "The irony is that even as ministers encourage us to buy leaner, greener cars, they are forced to consider clawing back the money motorists think they will be saving."

"What the Chancellor gives with one hand he looks to take away with the other.

"People who think they will be financially better off by buying the most eco-friendly cars could be in for a shock as the government looks at ways of shoring up its falling tax revenue."

Tax reform
The government is now considering overhauling the VED system, and motoring groups and other interested parties have been invited to the Treasury to discuss the options.

These range from a pay as you drive approach, to a single tax charge on new cars at the point of Sale.

In the March Budget, Chancellor George Osborne outlined
plans to introduce direct debit payments for road for vehicle tax.

A spokesperson for the Treasury insisted that there are "no firm plans" for changes in vehicle tax rates.

But Sue Robinson, director of the Retail Motor Industry (RMI), says: "The government has indicated that it will look to review and reform VED as revenues fall due to consumers driving more fuel efficient vehicles.

"What this reform will look like is difficult to predict but may be related to road usage, using factors such as mileage or peak time use.

"It is also possible that the government will slightly adjust the current system and increase VED based on carbon emissions and other environmental factors."

This uncertainty is likely to be particularly difficult for motorists thinking of buying a new car and wanting to know what their future costs will be.

Professor Stephen Glaister says: "Buying a car is a big deal for drivers. They can do without constant changes to tax which could alter their purchasing decisions.

"If nothing else, there needs to be certainty about motoring taxation."

What do you think?
Have you bought a smaller, low-emission motor to benefit from low, or no, vehicle tax? Do you think a reform of the system will end in a worse deal for motorists?

Edited by Willo (19th Jun 2012 10:09am)
. . .

National News : Advertising
Click me for more Information......

* * * WikiWirral - Advertising Forum * * *
Now Advertise with WikiWirral.
WikiWirral stats 35,000 Page Views a Day +500 Search Engines.. Click Me
#703383 - 20th Jun 2012 2:39pm Re: Falling revenues prompt vehicle tax reform. [Re: Clive]

Thanks Willo for posting that. I was listening to a debate about it last week on the radio. In short, if HMG can't tax you one way, they'll pretty quickly think of another !! So what's new ? somad

#703410 - 20th Jun 2012 4:36pm Re: Falling revenues prompt vehicle tax reform. [Re: Clive]
StuyMac Offline

Wiki Master

Registered: 24th Nov 2003
Posts: 12002
Loc: Wirralshire
Maybe they should go back to a flat rate of tax. After all, gas guzzlers will use more fuel and their owners will therefore pay more tax.

At least with a flat rate we all pay the same for the privilege of using the roads, your choice of how much more tax you pay will be down to the mpg of your vehicle.

What If There Were No Hypothetical Questions?


Moderator:  Mod 
Random Wirral Images

Click to View Topic.
Newest Topics
John Lewis Broadband
by granny
Yesterday at 03:42 PM
No Christmas Tree for Liscard
by daveybm
Yesterday at 10:03 AM
by LouLou1202
Yesterday at 07:40 AM
by GaryFromWirral
Yesterday at 01:17 AM
Horn on 2009 Zafira Petrol
by rossie
21st Oct 2016 8:42pm
For Sale & Free
Raspberry pi2 model b
by AX_125
11:03 AM
Cordless 18v Jigsaw
by buddy
09:18 AM
Guillotine - sheet metal - bench mount
by buddy
20th Oct 2016 11:16am
Wolf Air Compressor
by buddy
20th Oct 2016 11:13am
Reebok Irun Treadmill - speares or repairs
by manmarj
19th Oct 2016 12:44pm
Featured Member
Registered: 23rd Mar 2013
Posts: 393
Newest Members
Kapil801, abcde, Lamphouseman, LouLou1202, washhistory64
12093 Registered Users
Today's Birthdays
No Birthdays
New Wirral Info
John Lewis Broadband
by granny
Yesterday at 03:42 PM
Mobile phone
by lincle
21st Oct 2016 7:04pm
Bonfire night
by lincle
19th Oct 2016 2:07pm
Hall Hire North WIrral ??
by yogawirral
18th Oct 2016 10:59am
Looking for Hall or Room Hire
by yogawirral
18th Oct 2016 9:15am
News : New Topics
No Christmas Tree for Liscard
by daveybm
10:03 AM
by GaryFromWirral
01:17 AM
Herbert of Liverpool
by cools
20th Oct 2016 2:46pm
Child Migrants
by granny
19th Oct 2016 7:34pm
by fish5133
18th Oct 2016 6:17pm
New Enthusiast Forums
Horn on 2009 Zafira Petrol
by rossie
21st Oct 2016 8:42pm
Magnificent Stag
by cools
20th Oct 2016 11:33pm
r.i.p Gary Sprake
by neddy
20th Oct 2016 5:07pm
Xtype sat nav
by lansyp
18th Oct 2016 9:04pm
Internet Intermittent (TalkTalk?)
by diggingdeeper
18th Oct 2016 2:23pm
(Views 24hrs)Trending Newest Topics
No Christmas Tree for Liscard 295
John Lewis Broadband 146
Calais man-child immigrants. 49
Hello 46
Big 40 Party 29
Wirral Sunrise Sunset
Sunrise Sun 7:56am
Sunset Sun 5:56pm
Local Time Sun 7:23am
WikiWirral Can . . . .