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I have started a pettion to get rid of the annual ved or road tax. This peniles drivers and owners of older cars. As it costs more to administer than it actually makes this seems a bit daft to keep such a system. I am proposing that 2/2.5% is added to the cost of petrol and this additionl renevue is ring fenced to go towards the cost of up keeping our roads. This would be a fairer system i think. Thank you mike. Dear Michael Young , We published the petition you created – “Abloish Road Tax Ved Tax for road Vehicles. Add2/2.5% to tax on petrol.” Click this link to see your petition and start sharing it: petition.parliament.uk/petitions/120942Thanks,
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long live bls tin
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sb
Part of things
Posts: 725
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Abloish? I don't know what an abloish is but I want no part of it!
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how about those that pay more to be on the road in the 1st place with higher fuel usage, how about charging more tax on Cars that achieve higher Mpg as they are paying less through fuel duty?
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YAWN
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Fraud owners club member 2003 W211 Mercedes E class 1998 ex bt fiesta van
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I don't think we should start petitions saying we want to pay more tax.
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Now is probably a good time to do it. It is very quiet in the Houses of Parliament and changes to the taxing of cars are probably top of their agenda.
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VIP
South East
Posts: 8,293
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I have started a pettion to get rid of the annual ved or road tax. This peniles drivers and owners of older cars. As it costs more to administer than it actually makes this seems a bit daft to keep such a system. I am proposing that 2/2.5% is added to the cost of petrol and this additionl renevue is ring fenced to go towards the cost of up keeping our roads. This would be a fairer system i think. Thank you mike. Dear Michael Young , We published the petition you created – “Abloish Road Tax Ved Tax for road Vehicles. Add2/2.5% to tax on petrol.” Click this link to see your petition and start sharing it: petition.parliament.uk/petitions/120942Thanks, VED has already been ringfenced to go towards Road Maintenance, and it has been since the last Budget. The only tax on Petrol is VAT at 20%, so increasing it 22.5% will only raise the price of a litre of fuel by about 2p. In order to raise the same amount of annual revenue as VED currently, the price of a litre of petrol would have to be increased by 40p, so where are you proposing the shortfall of Budget income is made? Also, you are introducing a 'pay per mile' tax, so the worst hit would be vehicles that travel the most miles, ie buses and trucks, meaning the cost of bus tickets would rise, and the cost of anything transported by truck would also have to rise. That's pretty much anything you buy from a shop by the way, so I take it you'd be happy for increased grocery and white goods prices instead of your c.£20/month Direct Debit for VED?
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VIP
South East
Posts: 8,293
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As it costs more to administer than it actually makes this seems a bit daft to keep such a system. Can we also have a citation for this 'fact', or has it come from a bloke you spoke to in a pub once?
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fogey
Posted a lot
Posts: 1,596
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QUOTE : 'the only tax on petrol is VAT at 20%'
Just for the record, that isn't correct.
The price of a litre of petrol is made up from:
: the cost of the fuel : 'Fuel Duty'(i.e. Tax!) currently £0.5795 per litre : 20% VAT - calculated on the cost of the petrol PLUS the fuel tax (which means you are actually paying tax for paying a tax!!!!!!!!!!!!!!!!!!!!)
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Last Edit: Jul 4, 2016 14:25:12 GMT by fogey
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VIP
South East
Posts: 8,293
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QUOTE : 'the only tax on petrol is VAT at 20%' Just for the record, that isn't correct. The price of a litre of petrol is made up from: : the cost of the fuel : 'Fuel Duty'(i.e. Tax!) currently £0.5795 per litre : 20% VAT - calculated on the cost of the petrol PLUS the fuel tax (which means you are actually paying tax for paying a tax!!!!!!!!!!!!!!!!!!!!) Duty is referred to as a value, not a Percent, hence I only added the percent increase onto the tax shown as a percent, which is VAT but even if you include that, it'll only equal 5p/litre, still a long way from the 40p/litre required. It doens't make the arguement for scrapping VED any more valid or intelligent.
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Last Edit: Jul 4, 2016 14:44:34 GMT by VIP
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fogey
Posted a lot
Posts: 1,596
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Quote: It doens't make the arguement for scrapping VED any more valid or intelligent.
Indeed it doesn't - hence my saying 'Just for the record'
Let's face it - if any changes are made to motoring taxes of any kind, they aren't going to be of benefit to the motorist
And as Hotwire said above, there are more pressing considerations on the Parliamentary agenda at the moment. . . . . . . . .
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pcj
Part of things
Posts: 203
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As Hotwire said this is indeed probably a good time to raise ideas re vehicle taxation as the Chancellor has plans to review VED from 2017:
This quote isn't from a bloke down the pub: VED only fully goes to roads from 2020 onwards (budget 2015): below extracted from Auto Express 9 July 2015:
George Osborne revealed the creation of the road fund in his July 8 Budget in one of the biggest reforms to motoring in recent years.
Osborne said: "We will create a new roads fund from the end of this decade and every single penny raised in vehicle excise duty will go into that fund to pay for roads. The tax paid on people's cars will be used on the roads they drive on. It's a fairer tax system for motorists."
Vehicle excise duty will also be overhauled from 2017 because figures show that under the current scheme three quarters of all new cars would be exempt.
No extra revenue will be raised by the new system but Osborne believes it'll be "more secure" and fairer, too.
Osborne said it's not right that those who can afford new cars pay no tax while those who can only afford as used vehicle have to shell out for tax when both are using the roads.
Note the OP wasn't requesting an abolishment of all the tax on fuel, he was simply trying to put on an addition to get rid of the burden of VED on classic drivers (and indeed it would help low mileage drivers too).
So instead of carping let's see some positive ideas re reducing the cost of operating our classics. Remember an awful lot of us were robbed when the "Free Road Tax at 25 years" deal was chopped then reintroduced at 40 years. You can get £5K or thereabouts knocked of the price of a new electric car if you're sufficiently well off to buy one so let's fight our corner on this.
Since we're in "bloke from down the pub" territory VIP kindly show us the source of the 40p per litre and how is it broken down to give that figure?
For instance(and I'm making this simplistic so before they bother, the carpers can kindly stay out of nit-picking games) let's take an everyday use car that does 10,000 miles per annum at 30 mpg and which pays £250 VED. That means every mile would need to raise 2.5p/mile to cover its VED. At 30mpg that is 70p per gallon or some 15.6p/litre. Bear in mind that (excluding most of our classics) most cars these days can easily better the 30 mpg figure and a large number will be paying the lower rate of VED anyway.
As for the usual line of "Are you prepared for increased costs?", firstly it wouldn't be very difficult for the government to exclude commercial vehicles from paying the extra duty, secondly most of them are diesel so maybe the government could apply it to petrol vehicles only, or maybe given the concerns about diesel emissions they might even see it as a tax to help drive people away from diesel. Who knows, but one thing is certain if we don't float our ideas re these things the powers that be ain't going to do it for us and come knocking on our doors bringing gifts.
Remember if VED is included with fuel tax then, unless you steal your fuel, nobody can dodge it. No need for all the police time devoted to checking (via computer and ANPR ) for road tax dodgers, no court time and costs, no admin for the government via DVLA (so they save a packet there) and we get the flexibility to use the appropriate vehicle as needed (assuming you own more than one) and pay as and when we use them.
Of course the high mileage doers will moan, but in most cases their increased costs would be a deductible expense via company tax anyway, and in reality given the huge amount of electronic communication available to us all just how many people really need to be racking up astronomically high mileages per annum anyway? Also doesn't racking up huge mileages in that way rather defeat any green credentials?
So give the OP a pat on the back. You think there might be flaws in his idea, fine, let's hear it constructively.
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EmDee
Club Retro Rides Member
Committer of Autrocities.
Posts: 5,924
Club RR Member Number: 108
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This peniles drivers and owners of older cars. Speaking as the owner and driver of an older car I would like to say that I, for one do not want to be peniled. It sounds frightful.
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drdick
Part of things
Posts: 359
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Speaking as the owner and driver of an older car I would like to say that I, for one do not want to be peniled. It sounds frightful. Yeah, I'm fairly open minded but that one sounds like it would make your eyes water
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VIP
South East
Posts: 8,293
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As Hotwire said this is indeed probably a good time to raise ideas re vehicle taxation as the Chancellor has plans to review VED from 2017: This quote isn't from a bloke down the pub: VED only fully goes to roads from 2020 onwards (budget 2015): below extracted from Auto Express 9 July 2015: George Osborne revealed the creation of the road fund in his July 8 Budget in one of the biggest reforms to motoring in recent years. Osborne said: "We will create a new roads fund from the end of this decade and every single penny raised in vehicle excise duty will go into that fund to pay for roads. The tax paid on people's cars will be used on the roads they drive on. It's a fairer tax system for motorists." Vehicle excise duty will also be overhauled from 2017 because figures show that under the current scheme three quarters of all new cars would be exempt. No extra revenue will be raised by the new system but Osborne believes it'll be "more secure" and fairer, too. Osborne said it's not right that those who can afford new cars pay no tax while those who can only afford as used vehicle have to shell out for tax when both are using the roads. Note the OP wasn't requesting an abolishment of all the tax on fuel, he was simply trying to put on an addition to get rid of the burden of VED on classic drivers (and indeed it would help low mileage drivers too). So instead of carping let's see some positive ideas re reducing the cost of operating our classics. Remember an awful lot of us were robbed when the "Free Road Tax at 25 years" deal was chopped then reintroduced at 40 years. You can get £5K or thereabouts knocked of the price of a new electric car if you're sufficiently well off to buy one so let's fight our corner on this. Since we're in "bloke from down the pub" territory VIP kindly show us the source of the 40p per litre and how is it broken down to give that figure? For instance(and I'm making this simplistic so before they bother, the carpers can kindly stay out of nit-picking games) let's take an everyday use car that does 10,000 miles per annum at 30 mpg and which pays £250 VED. That means every mile would need to raise 2.5p/mile to cover its VED. At 30mpg that is 70p per gallon or some 15.6p/litre. Bear in mind that (excluding most of our classics) most cars these days can easily better the 30 mpg figure and a large number will be paying the lower rate of VED anyway. As for the usual line of "Are you prepared for increased costs?", firstly it wouldn't be very difficult for the government to exclude commercial vehicles from paying the extra duty, secondly most of them are diesel so maybe the government could apply it to petrol vehicles only, or maybe given the concerns about diesel emissions they might even see it as a tax to help drive people away from diesel. Who knows, but one thing is certain if we don't float our ideas re these things the powers that be ain't going to do it for us and come knocking on our doors bringing gifts. Remember if VED is included with fuel tax then, unless you steal your fuel, nobody can dodge it. No need for all the police time devoted to checking (via computer and ANPR ) for road tax dodgers, no court time and costs, no admin for the government via DVLA (so they save a packet there) and we get the flexibility to use the appropriate vehicle as needed (assuming you own more than one) and pay as and when we use them. Of course the high mileage doers will moan, but in most cases their increased costs would be a deductible expense via company tax anyway, and in reality given the huge amount of electronic communication available to us all just how many people really need to be racking up astronomically high mileages per annum anyway? Also doesn't racking up huge mileages in that way rather defeat any green credentials? So give the OP a pat on the back. You think there might be flaws in his idea, fine, let's hear it constructively. You might have missed it, but HoTWire was being massively sarcastic. As for constructive criticism, that's exactly what I have provided. The OP's suggestion of increasing tax by 2.5% doesn't come anywhere near to filling the Budget deficit of abolishing VED. Regarding the calculations for 40p/litre... Average mileage for a vehicle per year is now around 7000. Average VED per year is around £320. Let's say average MPG is now 40mpg, not an unreasonable assumption. 7000m/40mpg is 175gallons. 175gallons x 4.5l/gal is 787 litres 787l x £0.40/l for VED is £314.80 Sure, the MPG may be a little on the high side, but even at 30mpg the number still works out to £0.30/l. You fail to address my point that 'pay per mile' tax increases affect the highest mileage drivers, who are commercial vehicles, not private motorists, therefore the increased costs will be passed onto consumers to make up the shortfall in profit margins. So you'll be paying both at the pump and in the shop for the increase.
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Last Edit: Jul 4, 2016 17:54:43 GMT by VIP
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insig
Part of things
Posts: 32
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It's a bit flawed in that electric cars will pay nothing by this system, with the present system I know that they are paying nothing at the moment, but the government will have the ability to change their banding and get them to pay.
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You could easily put in a rebate for commercial diesel users if there isn't already one in place - i remember talk of it when prices rocketed to £1 a litre and everything in the shops was going to cost a million pounds extra....
Anyway why not put a £1000 initial purchase and transfer tax onto electric cars and on hybrids to deal with the polluting effects of all those batteries and the dead dinosaurs being burned to generate the electric for their zero emmision vehicles ......
Anyway, all the politicians are too busy snipeing at each other and trying to get elected to run their own party to worry about trying to steer the country anywhere other than down the drain
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VIP
South East
Posts: 8,293
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You could easily put in a rebate for commercial diesel users if there isn't already one in place - i remember talk of it when prices rocketed to £1 a litre and everything in the shops was going to cost a million pounds extra.... Anyway why not put a £1000 initial purchase and transfer tax onto electric cars and on hybrids to deal with the polluting effects of all those batteries and the dead dinosaurs being burned to generate the electric for their zero emmision vehicles ...... Anyway, all the politicians are too busy snipeing at each other and trying to get elected to run their own party to worry about trying to steer the country anywhere other than down the drain Well that's great, but that means another chunk of revenue lost for the Budget, so now the increase per litre needs to be even more to make up that shortfall.
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VIP
South East
Posts: 8,293
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Here's an idea, why don't we just carry on paying what, in the grand scheme of things, is a fairly insubstantial sum each month to drive our cars around.
We're talking retro cars here, so the only cars that matter are those pre-2001 and post the current free limt, so after 1975.
The annual VED for these cars is £235 (£145 if you have a sub 1550cc engine). Direct debit over a year is a hair under £20 (or £12) a month.
If we put the required 40p on petrol by abolishing VED, that means you'll only be able to drive about 380 miles a month in your car (assuming 35mpg) or just 230 in your smaller engined car before you end up worse off paying extra tax in fuel.
Is the difference REALLY worth effectively restricting your mileage?
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Last Edit: Jul 4, 2016 21:42:58 GMT by VIP
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Dez
Club Retro Rides Member
And I won't sit down. And I won't shut up. And most of all I will not grow up.
Posts: 11,715
Club RR Member Number: 34
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You're forgetting the major mitigating factor Dan, that people are f-king idiots and incapable of seeing the bigger picture than the £230 they're 'saving' each year.
I don't think I need to remind you of the recent political events that prove the ability of the populous to ignore the rest of a story and only concentrate on one small detail....
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