The Tax Disc

Vehicle Excise Duty, or 'Road Tax' as it commonly called, is unfair, and the huge majority of people can see the obvious benefits of abolishing it, and recouping lost revenue by putting it on petrol. By doing this several benefits would accrue.

If we were to transfer VED onto fuel the following figures might apply to the UK

There are 27,273,726 Vehicles
They Pay £4,550,000,000 VED (Road Tax)
They Consume 37,000,000 Tonnes of fuel
i.e. about 48,100,000,000 Litres of fuel (1 tonne = c. 1,300 litres)
If Road Tax was £20 For Administration
We would need £4,004,525,471 Extra Cash
Which would be 8.33 Pence per litre
A Person pays £85 For Six months VED
A Person would pay £75 For Six months VED
At the new rate 900.86 litres would break even
equals 34.65 litres per week
equals about £27.72 per week (If petrol is 80p per litre)

i.e. Anybody who currently spends less than £27.72 per week on petrol would be in profit. Assuming petrol costs 80p per litre this formula would give an estimate of the savings per week

(£27.72-£Weekly petrol bill)*0∙104

Peter Bonsall suggests abolish VED altogether. This seems sensible