Motor Vehicles: Excise Duties

Transport written question – answered on 13th March 2007.

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Photo of Michael Moore Michael Moore Shadow Secretary of State (Foreign Affairs)

To ask the Secretary of State for Transport what (a) cost and (b) profit components are contained in the convenience charge of £2.50 that the Driver and Vehicle Licensing Agency levies on online credit card payments of vehicle excise duty.

Photo of Stephen Ladyman Stephen Ladyman Minister of State, Department for Transport

The £2.50 charge for using the credit card for online re-licensing transactions is calculated to cover the specific full costs of providing the credit card as a payment option and is subject to review on an annual basis. No profit element is built into the charge. The charge covers two distinct types of cost:

Credit Card company costs relating to the charges applied for processing credit card payments;

DVLA operating costs relating to the process of credit card payments, credit card enquiries and the investigation of disputed payments.

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