The DfT and DVLA are considering the future of the tax disc amid pressure for its abolition from organisations representing the fleet and vehicle leasing sectors, according to Fleet News.
Early this year the DfT published a consultation document focused on the reform of its four motoring services agencies – the DVLA, Driving Standards Agency, Vehicle and Operator Services Agency and the Vehicle Certification Agency.
At the time, in its vision of the future, the DfT said it would “consider the continuing need for the tax disc”. However, in the 2013 Budget, the Government announced that it had “ruled out plans to make significant reforms to the structure of VED for cars and vans in the current Parliament”. That means no decision will be made prior to the general election in May 2015, says Fleet News.
However, a DfT spokesman told Fleet News: “The DfT is still in the process of analysing responses to the consultation and will review issues relating to the tax disc in due course.”
Fleet News says that it understands that the DVLA is in favour of scraping the tax disc, but that the DfT remains unconvinced.
Click here to read the full Fleet News report.