WikiWirral Share a Little Learn a Lot about your Wirral
Forum Stats
12132 Members
65 Forums
72375 Topics
975994 Posts
50 posts in the last 24hrs
Max Online: 7831 @ 8th Apr 2013 4:18pm
Who's Online - Click Me
84 registered (11kendo, 13 invisible), 1535 Guests and 208 Spiders online.
Key: Admin, Global Mod, Mod
Social Media : Follow Us


(Views 7days)This Weeks Most Read
Disgusting surely not legal creamfields noise !!@ 1227
anything with castors 796
Pensby Hotel 461
Wirral Globe 433
loud music in new brighton 415
Sports Personality Of The Year 378
Cubitts Holland and Hannen 311
Raspberry Pi in the classroom! 296
PC Repair needed 266
HMT Lancastria 204
New General Forums
Lib/dems rule the day
by JimmyG
10:59 PM
Daft funny joke
by venice
05:54 PM
We dont learn much.
by venice
1st Dec 2016 9:22pm
Freegle
by venice
1st Dec 2016 6:36pm
New Wirral History
Name help
by Paternoster21
08:03 AM
HMT Lancastria
by granny
11:38 PM
Cubitts Holland and Hannen
by fish5133
27th Nov 2016 5:38pm
Fire station
by chris7777
22nd Nov 2016 12:24pm
Buy a house in Greasby for 12s a week - in 1935
by yoller
6th Oct 2016 6:56pm
Forum Tips
Photo Gallery Forums
fireworks on the Mersey last night
Hadlow train station
Topic Replies
live webcam from africa, a must see
by venice
Name help
by Greenwood
04:29 PM
HMT Lancastria
by granny
02:06 PM
Stanlow Abbey
by Kylix
02:05 PM
Sports Personality Of The Year
by fish5133
01:16 PM
Raspberry Pi in the classroom!
by diggingdeeper
12:45 AM
Wirral Globe
by Excoriator
11:02 PM
What are you currently reading?
by RUDEBOX
10:30 PM
Paying for EU Citizenship (Poll)
by diggingdeeper
10:19 PM
December
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 31
Recent Posts : What's On ?
Wirral TUC Meeting re Update on Wallasey CLP Suspe
by RUDEBOX
30th Nov 2016 9:16pm
World Aids Day Event 2016. Liverpool
by RUDEBOX
30th Nov 2016 9:05pm
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.

Uncertainty
"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)
_________________________
. . .

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


Looking for a Service / Tradesman? Look in our Local Business Directory. Click Me
#703383 - 20th Jun 2012 2:39pm Re: Falling revenues prompt vehicle tax reform. [Re: Clive]
Pinzgauer
Unregistered


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

Top
#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?

Top

Moderator:  Mod 
Random Wirral Images

Click to View Topic.
Newest Topics
Name help
by Paternoster21
08:03 AM
HMT Lancastria
by granny
11:38 PM
Wirral Globe
by locomotive
1st Dec 2016 6:25pm
54 plate renault clio 3rd brake light
by Mike72
1st Dec 2016 12:52pm
Raspberry Pi in the classroom!
by FelixCowden
30th Nov 2016 9:27pm
For Sale & Free
Steam Train Money Box/Ornaments
by Tranquil
1st Dec 2016 11:32am
Childs LFC Bike 5 - 8 Yr old
by Pete_M
1st Dec 2016 1:10am
Cat related Collectables
by Tranquil
29th Nov 2016 4:48pm
original xbox
by vw_kyle
27th Nov 2016 8:17pm
anything with castors
by lincle
27th Nov 2016 4:06pm
Featured Member
Registered: 11th Mar 2009
Posts: 462
Newest Members
Grayo123456, uptonvillage, NobbyHunt, sam1512, ant72
12132 Registered Users
Today's Birthdays
No Birthdays
New Wirral Info
Wirral Globe
by locomotive
1st Dec 2016 6:25pm
Wirral TUC Meeting re Update on Wallasey CLP Suspe
by RUDEBOX
30th Nov 2016 9:16pm
World Aids Day Event 2016. Liverpool
by RUDEBOX
30th Nov 2016 9:05pm
A job. Company not named.
by venice
30th Nov 2016 6:30pm
Santa's Grotto at Tam O'Shanter 11th Dec.
by Greenwood
29th Nov 2016 1:44pm
News : New Topics
Pensby Hotel
by granny
29th Nov 2016 6:39pm
Paul Nuttall Elected UKIP leader
by granny
28th Nov 2016 12:03pm
Disgusting surely not legal creamfields noise !!@
by svenlock68
27th Nov 2016 8:25am
Paying for EU Citizenship (Poll)
by diggingdeeper
26th Nov 2016 12:35pm
Footballers--Abused
by fish5133
25th Nov 2016 3:46pm
New Enthusiast Forums
54 plate renault clio 3rd brake light
by Mike72
1st Dec 2016 12:52pm
Raspberry Pi in the classroom!
by FelixCowden
30th Nov 2016 9:27pm
crop loss & water rationing in Dominican Republic
by FelixCowden
30th Nov 2016 8:46pm
PC Repair needed
by TudorBlue
29th Nov 2016 2:54pm
Sports Personality Of The Year
by fish5133
29th Nov 2016 12:32am
(Views 24hrs)Trending Newest Topics
HMT Lancastria 204
Name help 174
Lib/dems rule the day 34
Wirral Sunrise Sunset
Sunrise Sat 8:09am
Sunset Sat 3:55pm
Local Time Sat 7:40pm
WikiWirral Can . . . .