24/07/2009

Road Users 'Don't Trust' Motoring Taxes

Motorists do not trust the Government over road tax measures, a new report published by MPs suggests.

The House of Commons Transport Committee also says that road users believe the British government has been inconsistent in the way it has justified motoring taxes.

"The Government has been inconsistent in the way it has justified motoring taxes," the report concluded.

"Fuel duty has been presented, at different times, as a tool to reduce carbon emissions, a source of general revenue, and a means to fund transport investment.

"We are concerned that motorists are mistrustful of the Government regarding taxes."

The report also said the government needs to improve the consistency and transparency in the way it justifies taxes on road users.

The committee went on: "Major issues remain to be resolved in relation to taxes and charges on road users.

"Road users are, and will remain, an important source of revenue for Government expenditure, beyond that spent on the road network. If their trust in the taxation system is to endure, they must be treated fairly and with openness."

Chairman Louise Ellman added: "We believe taxation-based on car usage - through fuel duty - remains fairer than any approach based on car ownership and does more to encourage fuel efficiency or reduce CO2 emissions.

"We recognise that economic factors will limit how much revenue can be raised by this method.

"We call on the Government to develop other measures to address the problem of congestion."

(JM/BMcC)

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