Motoring taxation in the United Kingdom
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Motoring taxation in the United Kingdom comes in a variety of forms.
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[edit] Fuel duty
This is an excise duty or tax added to the price of motor fuel per unit of volume rather than as a percentage of the selling price. Fuel duty was introduced in 1909.
[edit] Vehicle excise duty
To be paid to use or keep most types of motor vehicle on a public road. The evidence of payment is the tax disc which must be prominently displayed on the vehicle. This is the latest in a line of taxes applied since 1903 for the use of a motor vehicle on public roads.
[edit] Other fees and charges
Although they do not contain the word "tax" in their titles these may be considered equivalent to taxes in that they contribute to the public purse, or in that they are compulsory charges if a motor vehicle is to be legally used on public roads.
[edit] Vehicle first registration fee
The fee charged for the compulsory registration of a motor vehicle which is to be used or kept on public roads.
[edit] MOT test fee
The fee charged for the compulsory annual vehicle inspection required for all motor vehicles over the prescribed age.
[edit] London congestion charge
The fee charged to use most motor vehicles in central London. The proceeds are used to fund public transport. Several foreign embassies (most notably the United States) have refused to pay the charge on the basis that it is a tax and not a fee, from which foreign diplomats should be exempt.
[edit] Dartford Crossing toll
Since the late 19th century tolls have only been charged in the UK for the use of private roads, bridges and tunnels, and for the use of public bridges and tunnels until the cost of their construction has been paid for. In 2003 the Dartford Crossing construction debt was finally paid off. The UK Government decided however to continue with the toll to fund other transport schemes[1].
[edit] Decriminalised parking enforcement
In Local authority (LA) areas which are part of a decriminalised parking enforcement (DPE) scheme, parking regulation, charging and enforcement is the responsibility of the LA. Contravention of regulations in such areas are not criminal offences, and any penalty charges are administered by, and paid to, the LA. Typically the revenue from such schemes is greater than the cost of running the scheme and the surplus goes into the public purse. The surplus revenue is ring-fenced to be used for transport related expenditure unless the Council is judged to be 'excellent' by the Audit Commission, in which case the surplus goes into the Council's general budget (as is the case for Kensington and Chelsea[2]). In 2005/6 the City of Westminster received GBP 65.4 million in parking revenue for on-street parking[3].
[edit] Notes
- ^ "Motorists 'let down' by toll u-turn", BBC, 2003-04-01.
- ^ What happens to the money?. Parking matters. The Royal Borough of Kensington and Chelsea (July 2006).
- ^ Westminster City Council (2006-06-21). Parking in Westminster - the facts. Press release.
