Like most people, I don't want to pay more tax than I have to, but I recognise that in some ways I am paying more than others because I use my vehicle less than average. But there are also some road users who pay less than average, which simply goes to show how inequitable the current VED system is.
The underlying principle of the scheme I have suggested is that every road user should pay a fair and proportional amount for the privilege of using the roads and in some way contribute to the cost of provision and upkeep. I do recognise that the money collected through VED is not ring-fenced for roads, all tax revenues are added to the central exchequer, but the more fairly gathered funds there are it gives the chancellor more room to fund transport and the roads.
Currently the VED scheme is skewed in some very unfair ways. What I have proposed was not designed to retain the current differentials but to more equitably distribute the tax burden based more closely on usage. It was also a considered approach that would not involve any new tax gathering mechanisms as they already exist.
I could have suggested a mileage only scheme, where the mileage recorded at the annual MOT would be used to produce a tax bill, but that would involve a new tax calculation and collection mechanism , and it would give an added impetus for the illegal clocking of odometers, and of course new cars which do not have annual MOT tests for the first three years would have to have some new data collection process put in place.
After reasonable consideration the fairest method of directly proportioning the tax burden is on fuel. The more you use the more you pay. More efficient low mileage users will use less fuel and thus pay less tax, where as low efficiency or high mileage users will use more fuel and thus pay more tax. No one can easily evade the tax, and any visitors to the country who purchase fuel will also contribute. It is provable that heavier vehicles do more damage to the roads and pollute more so here again fuel duty is a fairer method of reflecting the impact of the vehicle.
The point about foreign HGVs filling up on the continent before entering UK is what happens now so there would be no change there, except where a driver does need to fill up whilst in the UK, we do get the benefit.
The fact the tax is collected 'pay as you go' makes it easier for all to pay as there is no large payments to be made and the tax will always be up to date.
Anyone who wishes to reduce their fuel tax burden will look to either reduce their mileage and/or improve their efficiency.
It scheme also responds to the difference in vehicle loading so for example cars with a caravan in tow will use more fuel and thus pay proportionally more tax than when solo, Fully loaded HGVs will use more fuel than when empty, and so on.
UK business users who are generally high mileage users will have the VAT element handled and thus will end up paying slightly less than non VAT registered users as Vat is charged on the pump price after duties have been added.
You have made a good point about the effect it might have on goods transport. But the figure I calculated was based on Michaels suggestion of lost revenue per vehicle so it may not represent the real baseline figure.
I based this figure on Michaels suggestion of a £200 pa loss. The government will have access to the figures for total VED revenues, total fuel sales, and total vehicle mileage for the country so they could easily work out what the additional tax burden to put on fuel. It could easily be less than the £0.13 I calculated, and of course as I have pointed out above the VAT element would give some room for manoeuvre.
There, I have made my case, It is of course totally hypothetical so its unlikely to happen. Bu at least it has produced some lively comment.