Currently, the UK has one of the most expensive car taxation systems in the world. Besides VAT (sales tax) at time of purchase, drivers in Britain must pay fuel taxes and a road tax (Vehicle Excise Duty) a corporate tax (for fleets), and sometimes a Congestion Charge, as in London. Manchester is about to vote on a congestion tax as well.

Many of these taxes are based on a vehicle's CO2 emissions and are applied to cars in the same way. This means that a person who only uses a car on the weekends pays the same amount as a commuter. So the questions is: what about a "pay-as-you-go" road tax scheme that would be nationwide and more progressive? A pay-for-the-miles-you-drive tax is what TheGreenCarWebsite found that 53.5 of its visitors were in favor of in an online poll. 46.5 percent of visitors were against the idea. One reason for the disapproval was concern about invasion in motorists' private lives, since the actual mileage of a car would need to be registered to calculate the amount of the tax.

[Source: TheGreenCarWebsite]

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