Among the transport announcements made by the UK Chancellor of the Exchequer, George Osborne, in his Autumn Statement, he promised tax relief for motorists, including a freeze in fuel duty for the remainder of this Parliament. He also confirmed the abolition of the paper road tax disc, ‘removing an administrative inconvenience for millions of motorists’ from October 2014. This move is expected to save the Driver and Vehicle Licensing Authority (DVLA) around US$5 million a year. It will also save fleet owners US$16 million a year and speed up leasing and rental processes.
The tax will still have to be paid, but the DVLA has a digital record of who has and has not paid. It says most on-road enforcement action is now based on using Automatic Number Plate Readers. These cameras use the number plate rather than a visual inspection of the tax disc. The police also have access to DVLA records via the police national computer.
Commenting on the ending of paper tax discs, Jonathan Evans, PwC tax partner commented: "This will make things easier administratively, although it is not a big change. Many people already renew their tax discs online so this is a logical step. However, there will be people who don't have access to electronic payment systems or computers so provision will be needed for these people to tax their vehicles.
“A virtual system may make it easier for those in the motor trade or individuals owning vehicles which fall out of use, to stop the tax on a vehicle whilst it is not on the road, since the tax could be cancelled electronically without surrendering a paper disc. This would be good news for taxpayers, and stop tax being needlessly paid on vehicles which are off the road. In order to enforce this regime, there will be an increase in the automatic number plate recognition (ANPR) equipment which in the future could effectively track motorists every move."
Meanwhile, the6983 Freight Transport Association commented on the freezing of fuel duty – saving industry around US$$304 million - as a positive step, but is not enough to deliver significant benefits to the economy. Only a reduction in fuel duty would provide the kind of confidence needed for businesses to invest in the future.
Theo de Pencier, FTA’s Chief Executive said: “George Osborne’s announcement today is good but not good enough. Whilst FTA is delighted with the Chancellor’s confirmation that fuel duty will be frozen next year, we would have liked more, with a cut in fuel prices rather than just a freeze. As with all government announcements the devil is in the detail, and we would have liked the Chancellor to commit to making vehicle excise duty stable."
Alongside these and the announcements on infrastructure released earlier by the Treasury, Mr Osborne committed the Government to expanding transport networks stating: “We need the new roads, new rail, including the northern hub and High Speed Rail 2.”
The tax will still have to be paid, but the DVLA has a digital record of who has and has not paid. It says most on-road enforcement action is now based on using Automatic Number Plate Readers. These cameras use the number plate rather than a visual inspection of the tax disc. The police also have access to DVLA records via the police national computer.
Commenting on the ending of paper tax discs, Jonathan Evans, PwC tax partner commented: "This will make things easier administratively, although it is not a big change. Many people already renew their tax discs online so this is a logical step. However, there will be people who don't have access to electronic payment systems or computers so provision will be needed for these people to tax their vehicles.
“A virtual system may make it easier for those in the motor trade or individuals owning vehicles which fall out of use, to stop the tax on a vehicle whilst it is not on the road, since the tax could be cancelled electronically without surrendering a paper disc. This would be good news for taxpayers, and stop tax being needlessly paid on vehicles which are off the road. In order to enforce this regime, there will be an increase in the automatic number plate recognition (ANPR) equipment which in the future could effectively track motorists every move."
Meanwhile, the
Theo de Pencier, FTA’s Chief Executive said: “George Osborne’s announcement today is good but not good enough. Whilst FTA is delighted with the Chancellor’s confirmation that fuel duty will be frozen next year, we would have liked more, with a cut in fuel prices rather than just a freeze. As with all government announcements the devil is in the detail, and we would have liked the Chancellor to commit to making vehicle excise duty stable."
Alongside these and the announcements on infrastructure released earlier by the Treasury, Mr Osborne committed the Government to expanding transport networks stating: “We need the new roads, new rail, including the northern hub and High Speed Rail 2.”
