Motoring Taxation in The United Kingdom

Motoring taxation in the United Kingdom consists primarily of vehicle excise duty (commonly known as VED, vehicle tax, car tax or road tax), which is levied on vehicles registered in the UK and hydrocarbon oil duty (normally referred to as fuel tax) which is levied on the fuel used by motor vehicles. VED and fuel tax raised approximately GB£32 billion in 2009, a further £4 billion was raised from the value added tax on fuel purchases. Motoring-related taxes for fiscal year 2011/12, including fuel duties and VED, are estimated that will amount to more than GB£38 billion, representing almost 7% of total UK taxation.

Road pricing in the form of congestion charges are in place in London and Durham. However these are generally viewed as usage charges rather than as tax for legal purposes although this interpretation is disputed by the USA and some other embassies in relation to the London congestion charge.

Read more about Motoring Taxation In The United Kingdom:  Road Usage Charges

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Motoring Taxation In The United Kingdom - Proposed Taxes and Charges - Future Tax Revenue Reduction
... with a lower carbon footprint could result in a significant loss of revenue from motoring taxes, estimated at GB£13 billion by 2029 at current prices, according to forecasts ... higher pricing in congested areas at peak times, while reducing the existing motoring taxes ...

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