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New Road Tax System Being Considered..

It has been announced that the government is considering revising the current road tax scheme to bring it inline with other taxes that charge proportionally depending on usage. In the same way that car insurance is cheaper for people with many years NCB because they have not made as many claims, the government believes that people who use the roads most should pay more. The logistics of carrying out this kind of program is likely to be discussed many times over the coming years. The question is how can the government hope to implement this plan? One option and possibly the simplest would be to abolish road tax altogether and add extra tax onto fuel. This approach would mean that all the people driving around without tax discs would have no choice but to contribute to the roads. The downside of this is that a tax disc helps to ensure that people’s car insurance is up to date and they have a valid MOT certificate. Another approach would be to add congestion charging nationwide to the busiest stretches of road in the same way that Central London has implemented it’s charging. Unfortunately this is likely to lead to an increase in number plate fraud where someone has a number plate made up that does not belong to them. If the number plate is from the same model vehicle this would be very hard to detect unless they were stopped by the police. Whatever approach the government decide on, it is important that some kind of check is still carried out as to whether someone carries valid car insurance and an MOT. At Insure Your Motor we are concerned that car insurance will rise if the number of uninsured drivers continues to increase.
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Comment: at 05:13 on 24th Jan 2011, Used Cars Indiana wrote:
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This tax can be viewed as a positive to those that do not drive very often and as a negative to those that drive a lot.  I do not see this passing simply because of the slippery slope it could create.  Also, auto dealers and auto makers would disagree with additional costs being associated with their products.

 

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