THE move to end the need to display a car tax disc, which comes into force on October 1, could lead to tax evasion costing the economy £167 million a year, the RAC has said.
It said it feared the number of tax-dodgers could equal the number who try to avoid paying motor insurance.
An RAC spokesman said: "We could be looking at about £167m of lost revenues to the Treasury, far exceeding the £10m saved by no longer having to print tax discs and post them to vehicle owners."
From October 1, motorists will no longer need to display a tax disc on their vehicle windscreen, with records of who has paid the duty being monitored electronically.
The spokesman added: "The big question has to be whether enforcement using only cameras and automatic number plate recognition will be sufficiently effective."
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