UK Losing Vehicle Excise Duty Revenues
November 29, 2015 Taxation in UK
LONDON – Dropping the UK’s “tax disc” system has resulted in a significant loss in tax revenues, and a rise in tax evasion.
The scrapping of UK “tax disc” system has led to a greater number of people skipping out on their vehicle taxes, according to new information issued by the UK government on November 26th.
Prior to October 2014 all cars in the UK were liable to display a round paper sticker in their windshield to indicate that all appropriate duties on the particular car have been paid, however, the system has now been updated and is managed via an electronic database.
It has now been shown that since the introduction of the electronic excise duty system, the tax revenues collected from cars has fallen by GBP 80 million.
The total amount of taxes collected per year from excise duties on cars is currently estimated to be approximately GBP 6 billion.
It is also estimated that the number of cars for which taxes have not been paid has risen from approximately one per 170 to one per 70.
Photo By: Phil Long