posted 4 years ago

Road Tax Proposal Could See Prices Rocket

Think-tank CentreForum has proposed replacing Vehicle Excise Duty with a system that could increase the price of high-performance cars by thousands of pounds.

Think-tank CentreForum has proposed replacing Vehicle Excise Duty with a system that could increase the price of high-performance cars by thousands of pounds. The concept would ensure that motorists no longer pay road tax annually, or six monthly, but incur one- off fees when they purchase brand new vehicles. Charges would be based on carbon emissions. As such - for every gramme of carbon vehicles emit over 94g/km - motorists would be charged £50. Equally, drivers would receive a £50 discount for every gramme below. This pivot point would be reviewed regularly in-line with the latest cars otherwise – over time – the Government would find its tax revenue falling. This proposal, CentreForum argue, would cut 2.6% off total UK carbon emissions and lower running costs for motorists.

Let us consider a few examples. The Ford Fiesta Edge Econetic 1.6 TDCi DPF's carbon emission figure is 87g/km; 7g/km below the 94g/km threshold. If CentreForum's proposal becomes law, the price of this supermini would therefore fall by £350 (7x£50). The Toyota Prius T3 Hybrid 1.8 VVT-i 5dr would benefit too as its emissions are only 89g/km. This would ensure its purchase price falls by £250. However, not every vehicle would be so lucky. Prices for the Range Rover 5.0 V8 Autobiography and the BMW M5 would increase by £11,400 and £6,900 respectively, thanks to emissions of 322g/km and 232g/km. But the ultimate misery would be reserved for cars such as the Ferrari 599. Its emissions, after all, are 415g/km which would incur a £16,050 fee. Quite a lot on top of the £212,096 price tag.
 

First thing, get rid of all think tanks and other assorted idiots that are on the public payroll (and more importantly on gold plated tax payer guaranteed pensions) then make all political aspirants take a a simple exam in common sense, then we wouldn't need to have new taxes and could reduce some taxation,

Matchiong road tax to co2 emissions or miles a car spends on the road is another way to extract money from the hard working people who build the roads and give these jobsworthys something to occupy thier time. I say put the "road tax" on to the fixed price of the car at new purchse and MOVE ON! Enough computer time and proving documents every year to placate the morons who run the DVLA.

Yet more complicated nonsense from clueless politicians and think tanks, the latter being an oxymoron. What should be done is quite simple and the fairest choice. Currently it's very unfair that an owner of a high co2 car (say £475 bracket) that uses it only 3,000 miles per year has to pay more than someone driving 20,000 miles per year just because the co2 is in a lower bracket. The owner of the high mileage car is pumping way more co2 into the environment. The whole point of alligning road tax to co2 was to encourage people to switch to more economical cars and drive less. Yet as proven it is far too rigid and unfair. The annual road fund tax should be scrapped and instead go into the price of fuel. Thererfore if one drives many miles, an un-econimcal car or is a poor driver than gets low mpg (compared to a better driver in the same model that gets more mpg) - then you pay more.

A few things to consider if this proposal were to go ahead - the manufacturers mostly effected would be producers of family saloons, the rich can still afford the tax but a family, who need the room, may decide on a second hand model instead. Of course the availability of these will reduce over time due to falling sales. To those who think the tax would only be applied to new cars, I feel this is unlikely, a smaller levy would be likely to be charged on the same basis for 2nd hand car sales. The consumer would ultimately pick up the price for any rise in tax on company vehicles, whether it be via a raise in fuel tax or the one off payment system, the cost of goods would be raised to make sure profits are maintained, or more likely increased, so that share holders get their dividends to buy their range rovers and ferraris. Final point, hooray I hear you cry! The technology exists, and is used at most petrol stations, to recognise car number plates, upon reading the plate your vehicle information can be found in seconds. If duty is put onto fuel, then cost per litre can be set in bands as tax is done now and high emissions vehicles will pay more for their fuel. Transport lorries could have a lower tax to support their business an prevent a rise in prices at the till, the teller in the fuel station can see if the car matches the description before releasing fuel and SORNed vehicles will be refused fuel automatically. On a long journey where a large engined saloon car is driven sensibly and is compared to a small engined car which is 'thrashed' to maintain similar speeds, the large engined car will use less fuel, even at 70-80mph, and lets be honest that's the speed most people drive on motorways. The inner city motorist would benefit from using a small car where their fuel consumption would be far better. So there you have it, the ramblings of an old fool who hasn't owned a car for 7 months, but rides the 10 miles to work on a cycle, it only takes 35 minutes, although I am a sweaty monster when I arrive, and has food delivered for £3 every 2 weeks using the Internet, it saves me about £400 per month and I'm much fitter.

As ther appears to be more and more evidence that global warming is the biggest lie since religion and has become a religion in itself any talk of emmisions is nothing more than a tax on the gullible. oh and I work in the oil industry oil is not running out and wont for a great many years, it is sitting under the desert all over the world and will stay there to keep the price high.

Hi,I drive a 2.5ltr diesel pickup and do about 5kmls a yr it runs on 50/50 diesel/wvo so very cheep ,yes put rd tax on fuel and it will suit the inventive driver ,because the government are so out of touch in how we live our lives they think tax tax tax is the way forward but its going to kill this country .

It's very much 'Horses for Courses'on this one. Everyone wants to pay less in tax it's only natural but the buck has to stop somewhere! Shame this wasn't done ten years ago as it's a case of too little too late. People in the main are still too selfish to give a fig about the planet and what damage we contribute to it's welfare. I work in the motor industry and would like to see less cars being made in the shape of the larger engine varity as these are the culprits when it comes to burning fuel and pollution.

So, here we have two whingers, complaining about paying £460 road tax a year for running `only` 1000 or 5000 miles a year. You really do take the p***. (One admits his other car is a V8.) These thirsty, wasteful, polluting heaps of junk should have been consigned to history and be on the scrap heap where they belong! You also have a choice, put up with it, or SELL them!! Don't come here and bleat to the rest of us that its so unfair that you have to pay more than a small car. There is no place for ANY car which does LESS than 30 - 35 mpg on the URBAN cycle. This is where the vast majority of cars spend most of their time, being driven around towns, or going shopping, or picking the kids up from school. Oil production is in terminal decline, meaning we have to make whats left, last as long as possible, not use oil like there is an unlimited supply. What about your or my kids, don't they have a choice of using a car too when they grow up? Even the oil companies are starting to worry about where the next major oil discovery is going to come from! That oil spill by BP in the sea off the American coast will become more common as they have to drill further off the coast, just to supply YOU with petrol to power YOUR wasteful V8/10 or V12. Selfish ba****d`s! WAKE UP, it`s YOU who are the problem. And before you ask, No I`m not jealous, and, NO I don't want a V8 or any other kind of "Luxury" car. They drink too much petrol!!!, and cost too much to keep on the road (as you are finding out). Smaller cars are more fun to drive, easier to tune up with the added bonus of being easier on the pocket. I hope road tax goes up by a factor of four or five, as long as it gets these big, thirsty, wasteful, polluting heaps of junk off the road!!!!! Good riddance to `em

Okay, so those that want to see the road tax abolished and extra money put on the price of fuel, let's see if you still have the same opinion when your food, clothing and heating goes up along with most other expenses that rely on transport. You people really don't see the bigger picture do you??.

All Governments are much the same, in their analysis "bleed the drivers". Would not be so bad if ALL the money went to road/travel and roadway improvements. Instead it is used up by fat cats and the lazy. I am with the majority, that politicians seem blinkered to. Remove the tax and add it to the fuel, the biggest polluters then pay.

Like Rick Hind (first poster) I too drive a big V8, but as a second car. My road tax is £460+, I only drove just over 1000 miles last year. Where's the fairness in this. Put the RFL on the fuel, it would equal a few extra pence on a litre.

I think the average motorist gets a bad deal when it comes to GREEN issues. What I would like to see is the abolishment of Road Tax or a least a peppercorn tax, The duty would be placed on fuel so the people who did the most mileage and polluted the most would pay for it at the pumps. I drive a car which attracts &460 pounds a year in Road Tax but my annual mileage is 5,000 miles a year, balance this against someone driving an 1600cc low emission diesel paying less than £100 pounds Road Tax, Lets say they drive 30,000+ miles a year as is not uncommon these days. I ask you who will create the most pollution.

What is more to the point is where does all the billions of pounds we have paid in 'GreenTaxes' It doesnt go to help find a more enviromental friendly fuel, or public transport in any form. Its just used to raise revenue for Governments who pretend to be concerned for enviroment

What a stupid idea. Surely it would be better to raise duty on fuel, then everyone would be paying for what they use and there would be no more dodging payment of road tax.

"CentreForum" think tank!How long and how much did this cost for this bunch of clowns to come up with this suggestion? This could ruin our motor manufacturing industry and vehicle sales.The only realistic way forward is to include a fair price within the fuel charge.Base it on an average cars road tax and average annual mileage to find a formula for pence per litre.

Since when has anything any government does been fair, the motorist is just seen as a cash cow and I suggest that Robert Robertson looks at just how much of his road tax goes on roads and how much goes elsewhere, if anyone considers they are getting value for money, go and drive on the roads that are full of potholes and are a disgrace to this country.

The sooner the 2008 Climate Change Act is repealed with it's nonsense carbon emission targets and Britain leaves the EU the sooner we may get back to a set of policies no longer based upon green dogma. The savings from having very low emissions from vehicles is tiny compared with the methane gas expelled by farm animals. A very loud cry would be heard if the government, in the form of Ed Davey, said that all these had to be slaughtered. The government has a big deficit in it's tax revenues because it's policies for growth just are not working fast enough. The same old solution - tax the motorist more, history shows that they will pay up!

Better to incorporate Road Tax in the price of petrol at thepump. I drive on average 4000 miles a year in my Rover 75 V6 and pay 270 pounds a year. Why should I subsidise a driver of a small car such as a Fiesta doing 20,000 miles a year which is spewing out far more CO2 over the year than I am. Logic dictates > 'Pay as you drive as you pollute'

I don't believe it..!!! Why the Government can't see the blooming obvious is beyond me. Adopting this WILL affect their revenues on newly registered cars. In addition what is the difference for example between a circa 200 c02 car wich travels 7500 miles per year and an 140 C02 car travelling 14000 per annum...well surprise surprise the lower c02 car with higher annual mileage produces more c02...so as ever the simpleist thing is add road fund licence to fuel prices...that way the people who use the roads more and have a larger c02 output per annum contribute more....you'll also grab the tax dodging scumbags as well...simples

Funny how some people expect the roads to be there for their use, whenever they choose to use them, but are not willing to pay their share of building them and maintaining them! All this talk of those who hardly use their cars paying less for the roads being built, maintained and improved is totally selfish. The present system is just about right, everybody pays road tax depending on their emissions, need insurance to get the road tax and pay more tax if they buy more fuel. The people who want to change that system, basically want to pay less for the roads infrastructure than everybody else, nothing, if they could get away with it.

Adding to fuel would make more sense,although I do think NO ONE needs to run a car like a Ferrari anyway,and most larger cars like Mercs,Beemers and Rangerovers are just bought to make a fashion statement.

Why can't the road tax be incorporated in the petrol cost? Then those who drive the most would pay the most. I have a shogun sport equippe v6 petrol but drive on average 3 to 4 thousand miles a year, why should I pay for high emission output when someone driving a fiesta driving 10 - 12 thousand miles a year puts out more emissions than me? I have no objection to the more I pollute the more I pay.

Typical Fiesta useage of say 20,000 km over a year,maybe 2 gives 1,740,000 g of co. Typical Ferrari 559 maybe 4,000 km over the same period gives 1,600,000 g. Must be some logic in there somewhere - b*****d if I see it though....

Second hand car market for half decent cars will be affected then, if someone want to a nice car with devnt performance and secong hand is the only way they can afford one, this extra few thousand pounds ontop of the price makes it unrealistic and very over priced, o but wait at least all those people driving little corsa's get to do so for free.... A nation of wonens cars on the roads

I appreciate that this comment is not in line with those of the majority of contributors but this looks lioke a graet idea to me. It is not an attack on "motorists" nor will it kill the car industry. Will someone who is about to pay £86,345 for a Range Rover 5.0 V8 Autobiography really change their minds when faced with an extra £11,400? Is Jaguar Land Rover (who will be hit about as hard as any UK car plant) completely dependent upon UK sales that they would be put out of business by the (my guess would be relatively modest) sales they would lose within the UK? I really do not think that this is likely. My guess would be that it is far more likely to be a big plus for UK based car plants at the expense of foreign based plants. Those paying the high levels of duty will be those who want to drive new gas guzzlers. It may well affect the second hand prices of luxury cars (which would hit people like me)but is even that really likely? The value of these cars plummets because they are expensive to run and maintain and that (apart from lower petrol prices) will not change. Those who buy low emission vehicles will benefit. The knee jerk reaction that "it's another attack on the hard done to motorist" seems to be well wide of the mark. This is a great idea. (and no I do not drive a Prius, I have a Jag myself and it is great)

And then the next government comes along and decides to put fuel duty up as well. I suggest that they should scrap cross subsidy whereby any tax raised from motorists should be spent on roads. Normal income tax would have to increase, but then the electorate would see where the money goes.

The last labour government waged war on motorists for 13 years. Regretably this goverment is doing the same. It has reached a point where people are almost frightened to drive their cars at normal speeds. Just imagine if this same effort had been put into catching muggers, drug dealers etc. When I reda about fines for breaking the law it is often seen motorists recieve far harsher treatment than someone who has committed GBH explain that ? The Police are doing as they are told by the Government we are an easy target and a cash cow for the EU to live like lords while us the peasants suffer !

The forum thinking up ways to screw the motorist and contrive such measures to scam the motor trade are a costly bunch of parasites wanting to look good to a government , hell bent on any way possible to dream up such nonsense and are the real cost to the already hard hit tax payer. The motor industry bodies and associations , no doubt, were not consulted.

Another attack on the motorist by some bloody idiot who sits behind a desk and doesn't have a clue people have the right to pick choose whatever car they want to drive not to be dictated to by a idiot who obviously is intent on destroying the car trade.

Where the hell is all the tax going? Down the Black hole thats the third world, MPs wages etc.........not to mention the Poxy EU!

Contract hire cars would accrue c10 years worth of RFL over 4 years and therefore distort pricing horribly?

That's a silly tax, it makes the assumption that the car will be driven. The guy isn't going to use his Ferrari to get the shopping, or go to the post office. He will take it for a blast but probably not much else. - the government like road tax as its compulsory whether the car is used or not. In addition, they can continue to charge duty on fuel. Win win for them - more tax for us. Whoever thought that up should be sacked, as loads of other people have noted, fuel should cover the road tax, the more you use, the more you pay, it couldn't be easier.

I've been saying put it on fuel duty, that way the more you use the road the more you pay, let's face it its a no brainer but as usual that's far too easy for the government to implement, they would rather spend millions on developing an idea that's just idiotic rather than use common sense.

What about imports?

There should not be road tax on any vehicles , it should all be on the fuel , the more you use the more you pay ie a car on the road all the time ie company cars,trucks, taxi's will pay more and the people that hardly use there cars will not pay to much .

also think all vehicals coming into uk should pay a fee to use are roads

what a load of crap , new cars sales would be killed off and used car prices would go though the roof,and for all those thick people who run out to buy an electric car and think no road tax yeah right you pay vat on your electric bill !!! road tax should be scrapped and a 1p added to fuel , more you use the more you pay its easy.

why not put it on top of the fuel, the more thirsty the car, the less mpg, so pay more because of it, simples....

This is an absolutely excellent idea - I hope it's adopted. Better to pay an one off amount than be saddled for years with a punitive tax. Competition will ensure that buyers won't lose out too much, so it won't penalise buyers of new cars hugely.

Never happen - too much money to lose and the politicians would have to lower their pay rises below the 27% they currently receive.

Heres a better idea everyone. leave road tax the way it is or lessen it so people who are lucky enough to afford a car can be happy and stop giving so much free money to alcoholics and drug addicts

Hello, Soon we will hear that there is a tax for o2. Is there any thing other than oxygen which is not taxed ?

first of all this is a good idea save people a lot of money in the long run now i live out in the country and i dont need to use a 4x4 it just cus some people just dont know how to drive in snowy condition and such like and as for car companys going out of buisness bullshit all they have to do is get the emissions down or do a smaller sized engine it not rocket science but then again it may be for some thick headed buggers so it simple really buy a smaller car AND STOP BLOODY COMPLAINING and why does the think tank need to be shut down at least they have some good ideas unlike these dickheads in the goverment

I don't see how this could ever work as there are more second hand cars owned on the road than new ones purchased and therefore there would have to be some form of road fund licence set in place for this purpose and if so this rules out the above idea as it would simply be seen as penalising a new owner purchase and as previously mentioned by somebody the car manufacturers would suffer even more than they already are. I believe what we should be doing is looking to have a 2 year MOT and road fund licence that included third party bodily injury. This is how it is done in Australia. Seperate insurance for vehicle or property damage is required but it is at a much less cost to the motorist. A Government Insurance office (GIO) as in Australia should be set up which deals with all personal injury claims and stops fraudulent claims. It's time large corporates were stopped from bleeding the UK motorist dry and the British Governement move to this method ASAP. Yes the road fund licence would cost more but it would be a better system.

bullshit

All this CO2 emissions is all very well maybe in cities, but those like me who live in country areas and rely on 4x4 cars to actually get around it is very prejudicial

Yet another way to get money out of motorists, see drivers as cash machines. people don't drive for pleasure or fun. and for the green peeps brigates remember that if all vehicle stopped overnight our society will crumble.

Centreforum need to come back to planet earth. This would kill the new car market straight away, no road tax on 2nd hand cars, all paid for when the car was purchased new. People on these think-tanks, obviously can't think about issues and the other effects their ideas might have. This think-tank needs to be shut down, if its coming up with such loopy ideas.

Stupid idea. Think of the millions of people who would be put out of work if this system went ahead. Jaguar Land Rover would close within weeks. What politician would allow that to happen?

Bloody good idea but you need to add some tax onto the fuel price. Only a very small amount maybe 1p per litre. This would generate enough money to pay for pot hole repairsetc. Then add another 1-2ppl to cover 3rd party insurance so there wont be any uninsured people. Whilst we are doing a bit of reform lets have a panel that assesss all road collision injurys and pays out the compo. That would stop all the lawyers and Dr's milking the system more than the claimants. End of RANT