News > Motoring  

Could paper tax discs seek a return?

Since the removal of the paper tax disc in 2014, DVLA's data has shown that revenue has dropped in the past year.


DVLA’s data has shown that the removal of the tax disc has resulted in a drop in revenue of £93m by March of 2016. Revenue plummeted from £6.023b to £5.93b, which was way beyond DVLA’s predictions. The DVLA believes losses could continue to rise in the coming years because of the threat of increased evasion due to the fact the expiry date is no longer visible in the windscreen.

To combat people evading tax, cameras with automatic number plate recognition are being placed on busy roads to check vehicles against a tax database to determine those breaking the law.

To help track taxing, vehicle tax is no longer transferable from owner to owner and sellers must cancel their tax, with buyers renewing it as soon as the car was purchased and when it is intended to be driven on public roads.

A raft of complaints from motorists who felt they had been unfairly fined for failing to renew car tax duly followed the change, which many claimed had been badly communicated.

Other factors affecting the revenue loss, included the number of low and zero cost tax due to low carbon emission cars. The DVLA are rectifying this next year when the tax bands are being reviewed. Most users will also see an increase in the revenue paid on new cars.

Do you think that the paper tax discs should return?


People who read this also looked at:

Contract Hire VS Leasing

Contract Or Purchase - Which Is Best For YOU?
Contract Hire VS Leasing

Buying An Older Vehicle May Be False Economy
Contract Hire VS Leasing

Petrol VS Diesel: The Great Debate