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Autumn Statement 2013: Car tax to go digital as tax disc is retired

By amerrell  |  Posted: December 05, 2013

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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

the phone.

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

1920.

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