Friday, April 01, 2005

Should Road Tax Be Scrapped?

It's that time of the year again. Yesterday I paid £110 for my car tax. I know some people who drive a lot more then I do, yet (depending on their car) they pay the same amount. If the money raised from road tax is to help pay for maintenance of roads, then surely those who travel further should pay more as they provide more wear to the roads. Therefore I propose scrapping road tax and adding it onto the price of petrol. This would have several advantages:
  • There would be no avoiding paying it.
  • We wouldn't need to pay the administration costs.
  • It would further encourage people to leave the car at home, especially for short journeys.
  • Those who use the car more, pay more
There is a downside to this. Companies who rely on transport for their business, for example lorry companies, already complain that they can't compete with companies based on the continent because of the fuel prices. To compensate for this, they would have to be reimbursed in some way.

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