I am sure there have been papers galore written on this subject but I find it curious that there is a natural assumption that higher tax will lead to less usage. Surely we would be better encouraging the motor manufacturer to produce greener fuel effcicient cars so that people have an option to have cheaper motoring that is fuel efficient rather than clobbering the motorist and not really encourganing them to change anything.I accept that under this scheme fuel efficient cars will pay less road tax but actually we should be giving them a choice to also have a cheaper car that uses less energy. I drive a Smart car (although I admit I had to to move on from the two seater version). The real incentive for me was not that the road fund was only £60 but that the car did 70 miles to the gallon and had a very low insurance rate (£150 fully comprehensive) because it was made of recyclable plastic. Even if you had taxed it £2,000 road fund it would have still been a cheaper option than other cars to run. I accept that the Lib Dem proposal is not to do this but I merely use it as an example.
Is this not one area where we should be challenging the supply side and not taxing demand?
5 comments:
Unfortunately, taxing rarely restricts use in the long term but increases wage demands and makes people want to do it more. What would the Greens say if cars ran on water and produced no polution at all? I bet they would still complain. The best solution for congestion was, in fact, congestion. It affected everyone equally whereas the congestion tax is easily afforded by those well off - and hasn't taught them a thing.
I could be mistaken but I thought the Tax was only for gas guzzling SUVs or high powered cars over 2lit.
If this is so it will be the first time I have ever agreed with a L/Dem idea.
My wife and me have kept 2 cars but downsized to a combined 2.4 lit both doing over 45 mpg.
You only have to witness the appalling parking of the oversize Cayenne/X5 brigades in Waitrose to realise £2000 is nothing but it does please other motorists that they are being seen to be PENALISED.
The cost of motoring will never be a deterrent or lead to less use,we have to accept the car is here to stay and will still be here when oil runs out.
So lets get on with building roads and tactical car parks so that we can all lead less stressful lives.
Bonnington Jagworth - I think you answer for me why this policy baffles me. The reason for doing it is to be environmentally friendly and get people to buy less polluting cars. There are problems with this in as much as whatever the level of road fund licence it will not deter the Bentley or 7 series BMW driver because frequently it is companies that pay these duties. Even when it is not campanies the individuals really do not care. It is about like Council Tax where in some very wealthy places no one really cares how much it is because it is a small sum for them. Nor will it encourage manufacturers to invest in cars that have cleaner technologies. Therefore as an environmental intiative I see this making no difference.
Incidentally there was an article in Which? last week that said that hybrids were a con. Apprently they are 20% more expensive than other cars, do qualify for lower road fund but in fact are not as fuelefficient as they claim. The hybrid Civic claims it can do 54 mpg but tests showed it only averaged 35. The Prius had 47 mog when it was suppoed to do 66mpg. The Lexus (David Cameron's car) consumed 100% more fuel than the most fuel efficient ordinary cars.
Interesting you chose Cameron's car Kevin as an example of contradiction - not only did it consume double the petrol of those cars apparently less efficient, it was driven by his chauffeur as Cameron pedalled a bike for the benefit of the press. Now THAT is being hypocritical AND not very environmentally responsible. Wouldn't you agree?
The Smart Cars are already available in the US from ZAP www.zapworld.com ZP (NYSE). A California based company who is also planning on brining a Brazilian made car to the US, the Obvio! 828, that is a hybrid that can run on any combination of ethanol and gas. Zap is also the only car company who is selling a Chinese manufactured car in the US the 100% electric Xebra city car .
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