The Office of Budget Responsibility, which advises George Osborne, the Chancellor, said yesterday (Mon) that tax from fuel duty would be £500m lower than expected in two years time and car tax would be £100m down.
The Government said, in small print in the budget that went unnoticed at the time, it would consider reforming car tax to "ensure that all motorists continue to make a fair contribution to the sustainability of the public finances".
Or the RAC said yesterday that it could raise fuel duty to cover the shortfall.
To make up the £600m would mean adding a £20 charge for every single motorist in the country either through the tax disc or by increasing fuel duty.
The Treasury is losing out because not only are drivers trying to protect their wallets by buying less thirsty cars, but manufacturers are producing far more efficient engines with greater fuel economy which attract a lower rate of duty.
16 May 2012
Drivers face dearer tax disc as greener motoring hits Treasury Finances
