Automotive taxation in the United Kingdom consists primarily of excise duty vehicles (commonly known as VEDs, vehicle taxes, car taxes, and road taxes), levied on UK registered vehicles and hydrocarbon oil duties (commonly referred to as fuel taxes ) imposed on the fuel used by motor vehicles. VED and fuel taxes increased by approximately GBÃ, Â £ 32 billion in 2009, further Ã, Â £ 4 billion raised from value-added tax on fuel purchases. Automotive related taxes for the 2011/12 fiscal year, including fuel import duties and VEDs, are expected to total more than GBÃ, Â £ 38 billion, representing nearly 7% of total UK taxes.
Road pricing in the form of congestion charges is in London and Durham. However this is generally seen as the cost of use rather than as a tax for legal purposes although this interpretation is disputed by the US and several other embassies in connection with the London congestion charge.
Video Motoring taxation in the United Kingdom
History
Initial years
The history of automotive taxation is closely linked with road construction until 1937, because when automotive taxation has been treated as a 'general tax' by competing for funds with other departments on an equal basis.
In the early years of Twentieth Century funding for roads and related infrastructure were taken mainly from local aviators and tram companies, who were required to maintain roads around their tracks under the Tramways Act of 1870. Fuel prices for steam engines have been subject to duty local coal until their abolition in 1889, and centrally controlled during World War I and World War II.
The Motor Car Act 1903 introduces the registration fee of Ã, £ 1 (Ã, Â £ 99.00 per 2018) for each motor vehicle, which has also been worn by the carriage duty if they are not used only to trade. Transport work is paid for the car license which costs Ã, Â £ 2 2s. (Ã, Â £ 2.10) for vehicles weighing up to 1 ton, and Ã, Â £ 4s 4s. (Ã, Â £ 4.20) for vehicles over 1 ton.
The new task was introduced in 1909 on "motor spirit" (import gasoline), leaving alternative fuel free duty. The original 1909 level is 3d per gallon imperial. The 'Road Board' was established in 1910 that may grant grants to new roads to local authorities of the Road Improvement Fund as envisaged by the Development and Road Improvement Fund Act 1909.
The Roads Act 1920 requires the board to register all new vehicles and to allocate separate numbers for each vehicle and for Provision for collection and application of excise duty. The action also forms a Road Fund. The Road Fund License (later renamed Excise Vehicle ) was introduced in 1921 and increased the road that has suffered as a consequence of the Great War. It is intended as a wearable charge regardless of the fuel used to power the vehicle. The Minister of Transportation is responsible for collecting and spending collected money even though in subsequent years the Ministry of Finance accepts responsibility for the allocation of funds.
Increased transport by heavy road vehicles also increased wear on the road and led first to the "wet tax" for steam road locomotives, followed by the adoption of a Sal33 Report recommendation for all heavy vehicles. It conveys the perception that unilaterally free road use subsidizes railroad competitors, through the introduction of additional axle heavy duty in VEDs to charge commercial vehicle expenses for the costs they generate. There are exceptions to vehicles that rarely use public roads, such as agricultural tractors. This annual obligation paid by all road hauliers is proportional to the axle load and has the effect of moving many heavy steam-powered vehicles out of the way. This is accompanied by changes in legislation that relieve local authorities of some of their costs through new capabilities to set limits of weight and speed.
The Road Fund was abolished on 1 April 1937 as a result of the 1936 Financial Act, and automotive taxation was treated as a general tax since that date.
The Trunk Roads Act of 1936 has transferred the management of 4500 miles (7,200 km) of the main 'Trunk' roads to the Ministry of Transport.
1937 - today
Since 1937 automotive taxation has been treated as a 'general taxation' losing its direct connection with the funding of road and automotive infrastructure.
The 1962 Smeed Report suggests that "road users should pay the fees they charge to others," including road costs (construction, maintenance, lighting), congestion (motorists causing delays) and social costs (risk, noise, steam).
In March of the same year automotive organizations appealed to the Minister of Finance of the United Kingdom to reduce "high and disruptive driving costs" by cutting motor vehicle taxes in future budgets. Between 1950 and 1961 motor vehicle tax revenues increased from Ã, Â £ 131 million (Ã, Â £ 4.12 billion in 2018) to Ã, Â £ 730 million (Ã, Â £ 14.9 billion in 2018). In 1966, when tax revenues reached Ã, Â £ 1 billion, the Royal Automobile Club called for an end to the "spiral of automotive taxation spikes", stating that less than a third of the revenue was spent on road repairs.
Following widespread and politically destructive street protests in Britain during the early 1990s (including M11 and Twyford Down links), the Conservative government introduced the Fuel Price Escalator, which was an increase in auto fuel tax above inflation in order to stem the increase in pollution. from ground transportation and cutting the need for new road construction. The policy was sustained by the Labor government that entered in 1997 and was withdrawn following the 2000 fuel protests.
Since 2002 policy cues have been granted using the income tax system to encourage the purchase of company cars with low emissions.
In March 2005, a passing vehicle excise system, with tax bases based on CO2 ratings, was introduced as an incentive to purchase vehicles with lower emission ratings.
In 2012 the government announced that it is being consulted to introduce the costing of HGV road users to ensure that foreign carriers pay their fair share of UK road maintenance.
Despite these protests, economic behavior and riders in the country generally become less sensitive to pumping fuel prices, with economists now expecting to have a price elasticity of about -0.24 (thus an economist would expect that the doubling of prices BBM will stop a quarter of the way).
Maps Motoring taxation in the United Kingdom
Current tax
Duty of hydrocarbon oil ('fuel duty')
The job of hydrocarbon oil, commonly referred to as 'fuel duty' or 'fuel tax' is the excise duty imposed on some fuels used by vehicles on highways in the UK. Taxes are based on the volume of fuel, not as a percentage of the sale price. With the exception of gas, tariffs do not vary based on the type of fuel. Some of the vehicles include local bus services, some agricultural and construction vehicles and reduced or no-fly fuel duty. Discounted fuel prices are available for Bus transportation in the UK. In May 2008, the UK fuel tax was the highest in Europe.
The government's revenue from fuel duty was Ã, Â £ 25,894 billion in 2009. An additional Ã, Â £ 3.884 billion was raised from Value Added Tax on the assignment.
Customs vehicles ('car tax')
Customs Vehicles, also known as 'VED', 'vehicle taxes', 'car taxes' and 'road taxes', are road vehicle taxes levied as excise dues paid for most types of vehicles used (or parked) at public roads in the UK. Motor vehicles used on public roads no longer need to display current vehicle licenses (tax discs) as proof of payment that will not be issued without previous evidence that the vehicle has MOT and valid insurance. A 'Statutory Off-Road Notice (SORN)' must be made for unregistered unregistered vehicles on the road, and which has been taxed since January 31, 1998.
VED was introduced on the 1888 budget; the current system, which applies exclusively to motor vehicles was introduced in 1920 and initially paid directly to the Road Fund which was lined up for road construction until 1937, after which time it was treated as a general taxation. Since 1999, the duty is levied on the basis of CO2 emissions, starting with a reduction of  £ 50 rate, the scheme was extended to a graded system in 2001.
The task raised GBÃ, Â £ 5.63 billion in 2009.
First vehicle registration fee
A one-time fee charged by the Driver and the Vehicle License Agency for the mandatory registration of motor vehicles to be used or stored on public roads.
Import vehicles
Customs duty on some Gray imported vehicles and components of vehicles or spare parts from outside the EU may be assessed at an additional cost subject to VAT.
Income tax
The value of a vehicle purchased by a company for the specific use of its staff is treated as a taxable benefit to that individual, and is assessed by HMRC with other income for income tax purposes. Until 2002, their financial returns were valued primarily based on price and mileage driven; this is then modified so that vehicles with lower emissions are rated at a lower value compared to higher emissions. In addition, taxable allowances for mileage using private cars remain static.
A large number of new vehicles are purchased as company cars, so this charging method not only aims to encourage companies to use "cleaner" vehicles, but, when sold on the second-hand market, this vehicle will filter and raise the efficiency of the national 'fleet'.
Road charges
In London and at a small cost of road usage elsewhere in the form of road pricing, this is generally seen as a 'usage fee' and not as a tax for legal purposes although this is disputed with regard to London congestion charges by the USA and several other countries.
London
The cost of congestion in London, which applies to most vehicles entering parts of central London was introduced in 2003 with an expansion to West London in 2007. The current daily cost is Ã, Â £ 11.50. Total receipts from London Congestion Charge for 2006-07 were Ã, £ 213 million (provisional figures), which, after operating expenses, left Ã, Â £ 123m of mortgage revenues for the London transport scheme.
Towards the end of 2006, the Mayor of London proposed the introduction of varied congestion charges. Similar to vehicle customs (VED), it will be based on carbon dioxide emissions in grams/km. This will reduce or eliminate the costs for small and fuel-efficient vehicles, and increase it up to Ã, Â £ 25 per day for large, inefficient vehicles such as SUVs, large sedans and compact MPV with G VED Band rating, ie, emissions & gt; 225 g/km from CO 2 . Vehicles without emissions are exempt from payload.
The low emission zone in London, the pollution cost scheme, introduced between February 2008 and January 2012 covering almost all Greater London Payments of the LEZ fee is in addition to the required congestion charge.
Dartford crossing
In 2003, Dartford Crossing's construction debt was settled, which should result in the elimination of toll fees to cross. However, the government decided to continue charging most of the users who crossed to reduce the level of congestion. Ironically, since the increase in crossing capacity is doubled in terms of road lanes, but does not add toll booths, it is the toll gate itself responsible for long queues at peak times, and cubicle displacement will almost certainly reduce congestion.. Like congestion filling schemes, all results should be used for transportation purposes. In one year this money amounts to Ã, Â £ 60 million.
M6 Highway
The first privately operated private highway in the UK opened in 2003. The M6 ​​Toll (originally the North Aid Road Birmingham) is designed to free the M6 ​​through Birmingham, which is one of the most used roads in the country.
Other road usage charges
The Durham City congestion charge was introduced in 2002. The acceptance of the scheme for the 2006-07 financial year was Ã, Â £ 67,000.
There are only two public toll roads (Rye Road between Hoddesdon and Roydon and College Road, Dulwich) along with five private toll roads.
Taxes and fees filed
Road pricing
In 2005, the Government issued a proposal for a UK wide street price scheme. It is designed to be a revenue neutral with other motor vehicle taxes to be reduced as compensation. The plan is highly controversial with 1.8 million people signing petitions against them.
Car parking at work
Nottingham became the first city in the United Kingdom to introduce a parking levy at work . Levy means a fee for Ã,  £ 350 on every available parking space for employees in business with more than ten parking spaces. The Council proposes to use the revenue, which is worth  £ 10 million in the first year, to develop the city's tram system.
Reduction in future tax revenue
A 2012 study by the RAC Foundation-funded Institute for Fiscal Studies (IFS) found that the government's push to promote green vehicles with lower carbon footprints could result in significant revenue loss from motor vehicle taxes, estimated at GBÃ, Â £ 13 billion by 2029 at current prices, according to estimates by the Office for Budget Responsibility. This revenue drop is partly due to increased vehicle efficiency and the growth of plug-in electric vehicles. Among the options available to governments to offset losses, a further increase of duty on gasoline and diesel or the introduction of new taxes on alternative energy sources such as electricity for vehicles is considered. However, due to the lack of popularity from the previous and the risk of obstructing the overall green vehicle strategy, the IFS study recommends introducing a national road system of pricing to charge drivers with every mile driven, at a higher price in crowded areas at peak times. , while reducing existing motor vehicle taxes. Under this strategy, rural drivers may pay less, as rural drivers are currently under-charged according to research.
Wolfson Economics Prize
Wolfson's 2017 Economic Award is based on the question "How can we pay for a better, safer, more reliable way in a fair way for road users and good for the economy and the environment?" . It was won by Hungary Gergely Raccuja with a proposal based on charging by distance to replace the duty of fuel and duty excise vehicle
See also
- Road pricing in Great Britain
- Highway in the UK
References
External links
- Fuel for Thought - What, why and how of taxation of the Fiscal Studies Institute (2012)
Source of the article : Wikipedia
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