The Department of Transport and the Driver and Vehicle Licensing Agency should consider using automatic number plate recognition (ANPR) systems to help better measure the level of vehicle excise duty evasion.
The recommendation comes from the National Audit Office, which says evasion is going up and hitting the DVLA's attempts to meet Gershon savings and efficiency targets.
According to the Department for Transport's roadside survey in June 2006, Vehicle Excise Duty evasion was running at around 5%, worth £217m. This was up from the 3.6% reported in the previous year.
The DVLA, said the NAO, has little prospect of achieving its evasion target of 2.5% by December 2007.
It also has little chance of meeting its related Gershon efficiency target to generate - through a reduction in evasion - an additional £70m in revenue each year by the end of March 2008, said the NAO.
The last roadside survey also estimated that over a third of motorcyclists (37%) are unlicensed, an increase from 30% the previous year.
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