Road Tax the Rich, Give Savings to the Poor
A leading think tank believes there should be a revolutionary shake up in motorist taxation, making richer drivers pay more per mile.
The report stems from the Institute for Public Policy Research (IPPR) who has big plans to change up what they call an ‘unfair, fiscally unsustainable, and unhealthy’ motor taxation system.
The report comes as the Treasury’s motoring revenues decrease every year as cars become more fuel efficient.
In IPPR’s report: the long road to ruin: Why the UK needs to reform motoring taxes - suggestions are made that shorter journeys are also charged a higher rate of tax. This is to promote people to use a bicycle or walk in the summer where cars may not be necessary, the change could promote a change in behaviour.
The system would work with use of shared data between the DVLA’s vehicle ownership database and Revenue and Customs records; this way people could be charged on their income automatically.
“The unfairness unsustainability and unhealthiness of current motoring taxation mean that reform is urgently needed to transform it into a progressive system that is based upon road usage,” the report states.
“[Technology] can be utilised to create taxation structures that encourage behaviour change through multiple means, such as seasonal pricing to encourage active travel in summer; charging comparatively more for shorter journeys; charging polluting vehicles more than less polluting vehicles; and linking motor tax levels to personal information held by HM Revenue and Customs to make motor tax progressive.
“It is theoretically possible to create a system that targets individual unnecessary journeys and makes allowances for people's income.”
The think tank, which holds close ties with the Labour Party, wants to track your movements around the country. They say with the use of GPS tracking, wireless transmission of mileage to petrol stations and tracking technology used by insurance companies, the idea is in fact feasible.
The IPPR states that such a move would take political courage and that anyone who opposed the reform is 'fiscally irresponsible'.
Edmund King, president of the AA described such changes ‘Orwellian’, as every single driver in the country would be tracked and monitored.