Combine road tax into fuel cost

This is a simple one and easily implemented, thus providing a quick reduction in headcount as well as reducing the burden on police and courts. 

Simplify the current vehicle tax system by removing vehicle tax (no more need for staff to administer the tax, nor no need to prosecute for not having it, nor no need to pay people to enforce it), and instead adding the total onto the tax of fuel. 

You can't avoid paying the tax then, and any visitors that come over using foreign registered vehicles will also pay the tax on any fuel they use whilst they are here. 

Rough calculations are

50,000 vehicles at £200 is £10,000,000 income

50,000 vehicles at [400 litres @ 0.5p extra on fuel] tax used per year is £10,000,000 income


Why the contribution is important

Simplification of taxation systems is always a great goal to aim for, and those with more usage pay more. 

by Tarne on April 11, 2017 at 07:18PM

Current Rating

Average rating: 4.8
Based on: 6 votes


  • Posted by Sickandtired April 12, 2017 at 02:41

    Reduce admin costs and evasion? It'll never catch on
  • Posted by ChuckB April 12, 2017 at 07:22

    This idea was suggested to the previous administration and ignored - not sure why as it makes sense !
  • Posted by ntaverner April 12, 2017 at 09:09

    Unfortunately 400 litres at 0.5p is £2 per car per year, not £200. However 400 litres per year isn't a lot, so perhaps the average is higher than this - even so the increase in petrol price would need to be quite material. I still like the idea though!
  • Posted by CastletownIOM April 12, 2017 at 09:17

    With cars getting more efficient or becoming electric revenue would go down.
    Why not a monthly pass for non IOM registered cars ?
  • Posted by Tarne April 12, 2017 at 10:49

    Totally borked up that calculation didn't I... !
  • Posted by dpfellows April 12, 2017 at 12:17

    Tarne the idea is a worthy one for all sorts of reasons not just administrative savings but also it could encourage more people to use buses to save fuel and more people to trade in gas guzzlers for fuel efficient vehicle - exactly in line with our Biosphere aspirations.

    You would have to think how to handle 3rd party insurance which currently has to be produced to tax a vehicle - maybe include that too in the fuel pricing.

    When this was raised previously the DOI said it was not legal to do this. They never said why that was the case or whether the law could be modified to accommodate a change!

    The system of collecting tax from fuel
    is already in place so this would be just one more collection in addition to excise duty and VAT.

    It also means visitors buying fuel here would contribute to costs of the roads etc...

    (some countries such as Austria currently charge a fee to visitors to drive foreign vehicles there)
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