The Department for Transport has said that around £107 Million could be being lost in unpaid tax -; in one year -; as a result of the abolition of the paper tax disc and that since the scrapping, the amount of untaxed vehicles on Britain’s roads have trebled.
This was despite Government claims at the time that scrapping the tax disc would save around £10 Million.
In 2014, John Spellar MP warned of the problems this could create, saying: “I feel the Government has underestimated the teething problems and also the danger that tax evasion will increase. I fear that they are being complacent about this”.
Commenting on the revelations, Mr Spellar said: “The Government’s short-sightedness in decision making is inexcusable. At the time, I warned the Government that they were underestimating potential problems”
“Those who made the decision to get rid of paper discs, which will cost millions of pounds to the exchequer, should be made to answer for it.”