EXCISE duty paid on vehicles in the UK fell by over £200 million (€255 million) in the first six months after the paper tax disc was scrapped and replaced by an online version.
The National Audit Office believes the change of system has resulted in the drop and may be only an initial problem. Measures are in place to catch those avoiding the tax, such as cameras linked to a database that ascertains which vehicles are being driven illegally.
The Audit Office stressed however that the levels of non-payment were still very low at around 1% of all vehicles on the road. The UK treasury earns about £6 billion (€7.5 billion) from vehicle tax each year.