Decades ago there was a plan to abolish road tax and add enough on to the fuel tax to make it fiscally neutral. What actually happened was that road tax did not go up for one year, fuel tax did, then the gov stated that they could not reduce road tax because it cost £50 to collect, so tough luck.
Completely abolishing it now, and insisting that there is a tear off piece on insurance certificates to display instead of road tax, should save £2 billion per year, assuming that fuel taqx rose enough to collect the same amount of tax.
After all, fuel tax is much cheaper to collect, as a percentage of tax revenues, then road tax, and the cost of collection is not afected by the exact rate.
Maybe there are other taxes for which the cost of collection is a silly proportion of the revenue raised, and perhaps other savings could be made in such areas.
no subject
Completely abolishing it now, and insisting that there is a tear off piece on insurance certificates to display instead of road tax, should save £2 billion per year, assuming that fuel taqx rose enough to collect the same amount of tax.
After all, fuel tax is much cheaper to collect, as a percentage of tax revenues, then road tax, and the cost of collection is not afected by the exact rate.
Maybe there are other taxes for which the cost of collection is a silly proportion of the revenue raised, and perhaps other savings could be made in such areas.