It has launched a public consultation, which invites views on the introduction of a charge for credit card payments of VED - made by the credit card firms and due to be passed onto the public. The document contains five options on how the charge could be levied and seeks feedback on each.
Views are invited by 14 January 2005.
The paper, 'DVLA/DVLNI Consultation Document on the Convenience Charge for Credit Card Payments of Vehicle Excise Duty (VED)' can be found on the DVLA website www.dvla.gov.uk/consultations or by writing to Kelly Gadd, Vehicle Policy Group, DVLA, Longview Road, Swansea, SA6 7JL, fax: 01792 765210, email: email@example.com.
Credit card companies charge a percentage of the amount of each transaction as a fee. Due to financial constraints and the need to provide value for money for the taxpayer, the DVLA says it cannot absorb this cost. Without introducing a charge to the customer, the DVLA would be unable to accept credit card payments.
It also stressed that it would not make money from the new purchase option.