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Chancellor George Osborne has announced the tax disc will be abolished as part of his Autumn Statement. It doesn't mean vehicle excise duty will scrapped though (the very thought!), simply that it will be replaced by an electronic system.

 

Tax discs have been rendered obsolete with the digital database available to the police and DVLA. But not, seemingly, that jobsworth at the Post Office counter. As well as removing the visual tax indicator, the new system will allow a monthly direct debit payment system. For the privilege, expect to pay another five per cent over the normal price of 12 months VED. But the cost of taxing your car in two lots of six months is likely to drop by five per cent too. This is government policy on motoring moving 'into the modern age' apparently.

The changes to vehicle tax are expected to be implemented from October next year. The announcement comes 93 years after the first tax disc appeared, following the Roads Act of 1920. Vehicle Tax has actually been around since 1888 (no Government ever would ever miss a taxation

opportunity) in that year's Budget.

 

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