Possible futures for car tax

For people’s opinions on the collection of road tax and how the system may be modernised as the collection of road tax has become increasingly complicated, with the current system containing more than 80 different payment categories.

More than 600 responses were received. Comments from a number of individuals suggested duty should be placed on fuel, even though the consultation document included an explanation as to why this is not possible.  Many other suggestions were made including use a flat rate, all users should pay, incentivise use of public transport and many others.

A commitment was expressed within the consultation document to introduce road tax payments by instalments and to assess new licensing technology. The Department will now consider the responses and develop options for Departmental consideration by the end of the summer.