Motor Vehicles: Excise Duties

Treasury written question – answered on 22nd March 2018.

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Photo of Chris Elmore Chris Elmore Opposition Whip (Commons)

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the higher charges applied to rates of vehicle tax when paid biannually as opposed to annually on the ability of people on lower incomes to afford that tax.

Photo of Robert Jenrick Robert Jenrick The Exchequer Secretary

It is a long-standing feature of the Vehicle Excise Duty (VED) system that rates for biannual and monthly payments are higher than annual VED.

The Driver and Vehicle Licensing Agency (DVLA) are currently engaged in a programme of large scale technical change to move their services on to new technical platforms. As part of this work, HM Treasury and the DVLA are committed to reviewing the current administration of vehicle tax, including these surcharges.

In the meantime, DVLA does offer a monthly direct debit, which also helps affordability for people who are cash-constrained.

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