Monday, July 5, 2010

£46bn in tax every year

It's an amazing number, but between road tax, the tax on fuel and the various sales taxes levied on new cars, British drivers pay a total of £46bn every year (source The AA). Divided by the population of the country, it means every man, woman and child pays an average £750 in motoring-related taxes. That's an unfair number because of course not every person in England drives. So if you take the estimated number of drivers (20m) instead of the total population (61.5m), it means every driver pays about £2300 per year in motoring-related taxes. That doesn't include the new 'showroom' tax that was introduced in April this year which adds up to another £515 to the cost of a new car purely in taxes.
For those of us in America, to put that into perspective, it's the equivalent of each of us paying US$3400 in motoring taxes every year.