IMO car tax should be scrapped and put on fuel duty instead.
That way it would be based on your mileage, which I think would be fairer.
I don't do many miles a year, but I'm paying the same car tax as someone who does 40K. How can that be fair?
PS. Car tax doesn't go towards repairing the roads. Just goes in the pot with all the other taxes.
its not far off that now really, as the average user pays more in fuel duty/vat than they do on road tax each year:
average mileage is now nearer 14k i understand. lets say at 30mpg.
over the year thats 467 gallons costing around £2,925 (at 137.8 per litre).
of which about £1,700 will be tax, - be it fuel duty or VAT.
So if you drive more, then you pay more, if you have a car that gives better mpg you pay less.
However i do understand that looking at this is simple terms why not scrap road tax and just add 10p to fuel duty..
Couple of things i believe.
1: road tax is a good way of keeping car data up to date and for policing of vehicles. Road tax was a quick way to monitor if a car was being kept on the road legally. However, this is changing as now with insurance etc able to be checked in seconds then this control aspect applies less.
2: Road tax has more of an effect on peoples influence when chooses a car to buy than mpg does. Strange but true.
3: it also means where people own more than one car they pay more than would otherwise be.
But it does mean owning a weekend car is expensive as you tax a car for the year and use it 25 times a year at weekends when the weather is nice.