UK government loses £94m following scrapping of car tax discs

November 29, 2019
UK government loses £94m following scrapping of car tax discs
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Proving that sometimes simple still is best, a new survey has shown that the UK authorities have missed out on some £94 million in revenue since the abolition of car tax discs. Apparently the number of unlicensed vehicles is soaring according to figures in the DfT’s 2019 survey on Vehicle Excise Duty evasion.


It was hoped that getting rid of the paper disc system in 2014 would cut costs and clamp down on motor tax evasion. However, it appears the move has backfired.

It is estimated that around 1.6% of vehicles on Britain’s roads are currently evading Vehicle Excise Duty. This is more than 600,000 vehicles and almost treble the number when the disc system was last in place. 

Under the new system, tax is refunded to the old owner if a vehicle is sold, but it seems new buyers are not necessarily taxing the vehicle promptly. It also appears that the new programme did not allow for the embarrassment factor of having an out of date disc causing drivers to tax their cars.
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