§ Mr. HoyleTo ask the Secretary of State for the Environment, Transport and the Regions what is the annual cost of collecting road tax on cars; and what estimate he has made of the cost of collecting the tax through a levy on petrol. [52072]
§ Ms Glenda JacksonIn 1997–98, the Driver and Vehicle Licensing Agency spent £127 million on vehicle licensing and registration, of which some £60 million is attributable to licensing. This figure relates to the collection of vehicle excise duty (VED) on all vehicles—a figure relating solely to cars is not available.
While it would be possible to estimate the cost of collecting revenue equivalent to VED through fuel duty, this has not been carried out because much of the cost of VED collection would continue to be incurred, to maintain the vehicle register. The current system also serves other functions, such as the checking of MoT certification and insurance.