Road Tax on Fuel

Put Road Tax on Fuel.


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Reduce admin on car tax.  Could increase revenue.  The user pays, i.e. big cars and high mileage.


by MelindaIOMGov on May 10, 2017 at 09:50AM

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Average rating: 5.0
Based on: 3 votes


  • Posted by DJW May 12, 2017 at 10:35

    This system is already used in the Channel Islands.
    It would allow all road users to be charged - no tax dodging
    Those who use the roads most pay the most
    Heavier thirsty vehicles tend to do more damage to the roads and would pay a fairer share
    Blanket change of tax rate is simple
    Visitors who use Manx roads would contribute to their upkeep
    The windscreen tax disc could be reeplaced with an insurance disc as in Channel Islands - may not be required with computerised insurance records
    Frees up Govt staff involved in the tax disc system to be redeployed or to make savings
  • Posted by brandyiom May 12, 2017 at 21:51

    Good idea to me. My figures are probably way out but if the 58,000 cars on the Isle of Man pay an average of £250 per year on road tax the post office collects about £15 million in vehicle road tax on behalf of the IOMG. If they retain 5% commission on this they are getting £750,000 per year as a handling charge. Scrap the annual vehicle road tax licencing system and get the revenue from a local tax on petrol/diesel.
    This would be a far more equitable way to raise tax for road usage. The more fuel you use the more you pay. The more efficient your vehicle the less fuel you use and the less you pay. A much fairer polluter pay principle. We would also get tax from visitors using the Island roads.
    Plus a big saving on administrating the current vehicle road tax system and enforcing it's compliance. It also catches out those who just use their vehicles uninsured (10%? of vehicles on the road).
    A fuel tax would be much easier to administrate.
    I wouldn't be surprised if it would save over £1million a year - hard on the post office though.
    Also not very popular as it might put £0.30 on a litre of petrol!!!
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