According to DVLA figures, the amount of vehicle excise duty collected fell by more than £200m in the six months after the tax disc was abolished.
Between October 2014 and March 2015, the first six months under the new system, some £2.7bn was collected in vehicle tax, that works out at £223m lower than the same period a year earlier.
Luke Bosdet from the AA said:
"It looks like it will work itself out but there are still many people who are not familiar with the new system."
Chief executive for the DVLA, Oliver Morley said around 99% of all vehicles on the road are taxed.
"That's around £6bn in vehicle tax passed to the Treasury every year," he said.
"We write to every registered vehicle keeper in the UK to remind them when their tax is due and we have introduced a range of measures to make vehicle tax easy to pay, such as direct debit or online.
"At the same time we are taking action against those who are determined to break the law."
Since the switch from the paper tax disc, a network of cameras linked to a database are in place to spot vehicles which are being driven illegally. According to The National Audit Office this "initial increase" in non-payment was not unexpected and should be temporary.
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