Car tax laws branded ‘confusing’ and ‘should be made fairer’ under new rule changes

Martin Lewis gives money-saving advice on VED car tax

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Car tax rules should be “made fairer” with drivers demanding to see the tax system “rebalanced” to reflect cars of the future. Their comments come as the first submissions are made to the Transport Committee’s inquiry into future road pricing strategies.

As part of their submission to the inquiry, Heycar put together an extensive consultation of more than 10,000 drivers.

The new poll found drivers overwhelmingly favoured a wholesale overhaul of the current tax system over the next few years.

Surprisingly, one in five motorists said they favoured the idea of a pay-per-mile system which would charge road users based on how far they travel.

It is understood the Chancellor of the Exchequer Rishi Sunak is currently considering a pay-per-mile scheme but this is expected to be unpopular among the mass population.

Meanwhile, a total of 28 percent of drivers say they wanted to see a flat-rate of car tax introduced.

This would see owners of petrol, diesel, electric and hybrid cars all paying exactly the same to use the roads regardless of their fuel type.

A small increase in fuel duty charges was supported by 16 percent of motorists but the introduction of road tolls was not popular.

Just eight percent of UK road users surveyed said they backed the idea of European style toll roads instead of any form of traditional car tax fees.

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Dan Powell, senior editor at HeyCar said the Government should “listen to what motorists tell them” in the poll.

He said: “As a result of the government’s commitment to removing polluting vehicles from the road, the road tax VED system requires a root and branch overhaul.

“Currently it’s a confusing and opaque mish-mash of various different approaches and pieces of legislation bolted together.

“Our wide-ranging consultation with over 10,000 motorists couldn’t be clearer in its findings – the system must be simplified and made fairer for all road users.

“To achieve this one in five suggest a pay-per-mile system should be adopted, while some even suggest the more radical approach of a single flat-rate of tax for all vehicles.

“An increase in road tolls also has its supporters. And while adopting a flat-rate risks disincentivizing the uptake of EVs – the government would do well to listen to what motorists tell them.

“Ultimately, drivers understand the need for the massive generational change that is upon us, but need to see the taxation system rebalanced to reflect the cars that are going to be on the roads most in the future.”

The Transport Committee consultation was established to tackle the issue of taxation as petrol and diesel car use begins to fall.

The Treasury has warned around £40billion of annual income from traditional fuel duty and Vehicle Excise Duty (VED) will decline as more drivers make the transition to electric cars.

The investigation will look at the case for introducing some form of road pricing and any economic, environmental and social impacts of any schemes.

The project will also take a look at the level of public support for each car tax idea and which ideas would be most appropriate for implementation in the UK.

However, the findings of the Heycar poll revealed two out of three motorists were unaware the consultation was even taking place.

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