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Private Cars (Taxation)

Volume 78: debated on Friday 10 May 1985

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asked the Secretary of State for Transport if he will consider simplifying the method of taxing private cars.

New cars are subject to VAT and also to a special car tax, levied at first registration. Thereafter they are subject to vehicle excise duty when they are used on the roads. VED for private cars is levied at a flat rate, currently £100 per annum, although six monthly licences may also be taken out. Almost all relicensing may be done in any of more than 3,000 post offices. The procedure for vehicle excise licensing also serves the purposes of maintaining an accurate vehicles register and of enforcing MOT test and insurance requirements.Consistent with those other purposes, vehicle excise licensing is as simple and convenient as we can make it. If the hon. Member has any particular examples of complexity in mind, perhaps he would write to me.