HC Deb 14 June 1979 vol 968 cc317-8W
Mr. Arthur Lewis

asked the Minister of Transport, in view of the Government's decision to maintain the present system of road tax licensing on vehicles, what action he proposes to take to ensure payment and prevent the near 15 per cent. of permanent evasion of payment of the road fund licence.

Mr. Fowler

As I said in reply to my hon. Friend the Member for Argyll (Mr. Mackay) on 25 May [Vol. 967, c.319], we shall be reviewing the whole operation of VED and a decision on the future of the tax can only be taken in the light of that review. The review will of course take into account the problem of evasion. The evidence from a survey undertaken by the previous Administration suggested that 7 per cent. to 9 per cent. of car owners were evading duty.

Mr. Rodgers

asked the Minister of Transport what estimate he has made of the current loss of revenue through the evasion of vehicle excise duty by car owners.

Mr. Fowler

As the right hon. Gentleman knows a review which he himself conducted suggested that 7 per cent. to 9 per cent. of car owners were evading duty.