VED
reform
This clause,
on page 70 in the Budget "red book", is interesting
as it mentions two issues with regard to reforms to VED under
consideration by Government that would aim to:
"Ensure that all motorists continue to make a fair contribution
to the sustainability of the public finances"
These clauses could have been drafted by Sir Humphrey as they
are sufficiently vague that virtually anything could be covered
as a VED reform by these two statements! The post 1st March
2011 scaled VED rates are based on the fuel type and official
CO2 emissions for the vehicle, whereas the earlier vehicles,
like MGBV8s and MG RV8s, have VED rates based simply on engine
size. As pre 2001 cars are around 12% of the UK stock on the
road, any upward adjustment of the VED rates intended to make
a substantial contribution to the "sustainability of the
public finances" would derive more revenue from the post
2001 cars than from an imposition on earlier vehicles. But the
"fair contribution" aspect may involve judgements
as to the other factors - for example the extent of the typical
annual use of the cars and of the emissions of individual categories
of car.
One of the concerns with the recent DfT consultation over the
MOT test relaxation proposals for pre-1962 cars was the "unintended
consequence risk" that if that measure were to be introduced
it could lead to classic cars being seen as a special group
over which special controls over their use or the imposition
of taxes might be made. Let's hope this clause simply means
"fair increases in VED" - for example increases in
line with annual RPI - and that is all the Government has in
mind.
"Reflect continuing improvements in fuel efficiency"
This may suggest the scaled VED rates for post 2001 cars may
also be calculated to include an mpg factor, but that will need
an "official mpg" figure to be established for each
car.
|
VED
tax disc display waiver
Clearly the Government, through the DVLA, is looking at
ways of reducing costs and using second class mail or other
low cost mailing services mean delivery times for tax discs
purchased online (an option DVLA is promoting as convenient
for both the driver and for the DVLA) could be extended. So
the increased "non-display" period of a current tax
disc on a vehicle is a natural measure to avoid difficulties
where a driver has purchased a new tax disc online but it fails
to arrive in time to avoid driving without a valid tax disc
on display on the car.
Direct debit system for VED payments
This is an interesting sentence in Clause 2.148 above as we
have seen VOSA (MOT testing body) has become quite clever with
its commercial income generating initiatives - it offered a
text reminder when the next MOT is due for a fee. So whilst
a DD system offered by DVLA would spread the VED payment burden
over the 12 months, we know that in the commercial world getting
customers on to a DD means less future renewal delays or failures
to pay. So the seemingly helpful DD system might be established
with a cunning rollover VED renewal built in, unless positive
action is taken by the account holder not to renew the VED.
In that case either the car will have been put on a SORN or
alternatively the car would have been sold and DVLA notified
by the seller of the new owner who would then be responsible
to taxing the car or declaring a SORN - or notifying DVLA the
car had been scrapped.
Posted: 210312
Back
to Budget 2012 report |
