Motorists who use motorway to pay more tax, under new Government plans
It have has been reported that government officials are contemplating a new two-tier road tax system which would see motorists having to pay a higher rate of road tax for the right to drive on motorways.
A Government review of transport funding has given rise to the possibility of this new scheme. If it were to go ahead the setup would mean that drivers who do not use major roads would pay a lower rate of Vehicle Excise Duty than those drivers who do.
Vehicle Excise Duty (also known as car tax or road tax) is coming under review by ministers after David Cameron stated there was a need for an “urgent” increase in private investment to improve England’s road network.
Amendments to road tax are deemed necessary by many because a fall in revenue is predicted as motorists move to more environmentally friendly cars which qualify for lower bands of vehicle excise duty.
Motoring group the AA are not advocates of a two-tier road tax system. They have voiced their concerns that such a scheme would price many drivers off the motorways and force them to take longer journeys on smaller roads. AA spokesman Paul Waters believes that a ‘first and second class system on the roads’ would ‘lead to slower journeys and more congestion’.
Ministers say that they have not yet finalised their plans regarding Vehicle Excise Duty, or Car Tax, and suggest that changes may be necessary to ensure the ‘sustainability of the public finances’.