Changes could cost the government millions as more people may choose to avoid paying their road tax.
From 1st October, it will no longer be a legal requirement to display a tax disc in the windscreen of a car and all tax payments will be stored and monitored electronically. Motoring groups are suggesting that this could lead to a massive reduction in the amount of revenue received by the treasury.
The RAC surveyed 2,000 drivers and found that 63% of respondents agreed that the changes would lead to people avoiding paying their tax and that 44% felt the changes actively encouraged such behaviour.
However, the government are confident that the new system will stand up to the test and that the DVLA will continue to enforce payment.
A representative for the Driver and Vehicle Licensing Agency said: "There is absolutely no basis to these figures and it is nonsense to suggest that getting rid of the tax disc will lead to an increase in vehicle tax evasion."
We have a proven track record in making vehicle tax easy to pay but hard to avoid, with over 99% of all vehicles taxed. Given the systems now in place we take enforcement action direct from our electronic records rather than requiring a tax disc."
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