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.

• There would be little or no evasion of duty.
• Visitors to the UK would pay their fair share.
• The frugal user would not be punished.
• The wastefull user would pay proportionate amounts of road tax.
• The system would be simpler

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