George Osborne's Autumn Statement brought the news that the paper
car tax disc is pulling over to retire after 90 years on the road.
For the first time motorists will be able to pay their
Vehicle Excise Duty monthly via direct debit, under plans being announced by
the chancellor as part of his Autumn Statement.
The Government will also make it cheaper to pay by
six-monthly instalments, in a move that is expected to save motorists who chose
to spread their payments over the year more than £20 million.
Those who are not online or do not wish to pay by direct
debt will still be able to tax their car in person at the Post Office or over
Speaking about the proposed changes a Treasury spokesperson
said: "This is a visual symbol of how we are moving government into the modern
age and make dealing with Government more hassle free."
The move is expected to save businesses £7 million a year in
administration costs alone.
The DVLA and police already rely on the electronic vehicle
register so the tax disc is no longer needed for enforcement purposes.
The changes will come into effect on October 1 next year and
will be legislated for in the Finance Bill.
Road tax was introduced in the 1888 budget and the current
system of excise duty applying specifically to motor vehicles was introduced in