VEHICLE EXCISE DUTY EVASION IN GREAT BRITAIN: 1994-95. A REPORT ON A DEPARTMENT OF TRANSPORT SURVEY OF TRAVEL BY UNLICENSED VEHICLES IN MAY AND JUNE 1994, LEADING TO ESTIMATES OF VEHICLE EXCISE DUTY EVASION IN THE FINANCIAL YEAR 1994-95

This report presents a Department of Transport (DOT) survey of travel by unlicensed vehicles in the UK in May and June 1994, leading to estimates of vehicle excise duty (VED) evasion in the financial year 1994/95. The survey was conducted by a private contractor to the DOT's specification. Over 9000 vehicle registration marks were recorded on magnetic media at 236 sites throughout the UK. The collected marks were compared with the 48 million records in the UK's vehicle information database. At each site, the level of evading traffic was estimated for each taxation group, for weekdays and weekends separately. Further statistical analyses were conducted, to estimate: (1) the average mileages run by evading and non-evading vehicles; (2) the proportion of evading vehicles in use; and (3) the resulting loss in revenue. Their results indicate that VED evasion will lead to an estimated loss of #163 million of tax revenue in financial year 1994/95, equivalent to about 4.1% of the expected VED revenue due. This compared with an estimated loss of about 3.5% of VED revenue due in 1989/90, made in the previous study. Evasion rates were found to be very much higher, over 30%, for motorcycles. Some supplementary results are also outlined.

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  • Corporate Authors:

    Her Majesty Stationary Office

    49 High Holborn
    London WC1V 6HB,   England 
  • Publication Date: 1995-1

Language

  • English

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Filing Info

  • Accession Number: 00711181
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • ISBN: 0-11-551694-8
  • Files: ITRD
  • Created Date: Sep 20 1995 12:00AM