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Electronic tax discs set to encourage tax evasion?

Going, going, gone! Does this mean more tax evasion?

by Jo Subramaniam

Could the scrapping of paper tax discs encourage people to avoid paying their road tax?

Picture this. You’re in your motorhome, cruising along the motorway. Perhaps you’ve got your pet dog with you. She’s scratching the seat covers a little, but you can’t go on trips without her – it just wouldn’t be right. You’re thinking about getting some new scratch resistant covers, and tuning up the engine, maybe a few repairs here and there, and it suddenly all adds up. That money you’ve got in your kitty that’s going towards your road tax is looking pretty tempting now, and who’s going to know if you’ve paid it or not? No paper discs on your windshield from October 1st, so who’s going to know the difference, right?

If you think that’s not likely to happen, think again. Around 63 per cent of motorists think the new road tax system will encourage tax evasion. Although paper tax discs are due to be slashed from the 1st of October, 36 per cent of drivers are oblivious to the change and nearly 50 per cent don’t know when the new law will come into effect.

The changes to tax discs were announced in a new move to save money, and an electronic system will replace the old system. Although cameras that can spot tax evaders will be used, the RAC believes that the amount lost in tax evasion every year could increase. Nearly £35 million is lost annually because of this problem and, with the new system, the RAC predicts this number could rise to £167 million yearly.

Not everyone is on board with the RAC’s cautious estimate. A spokesperson for the DVLA has commented that there is no basis to these figures, adding: ”We have a proven track record in making vehicle tax easy to pay but hard to avoid, with over 99 per cent of all vehicles taxed.”

What do you think about the new tax system? Will it encourage more people to avoid forking out on their road tax deliberately or will it simply be a case of business as usual?

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