So haydyn your theory is that we end up paying say an extra 10pence on bread,milk,eggs,meat etc etc to conter act the additional costs for fuel. See how long it takes before your car tax saving has been used up. I do roughly 600 miles a week for my work and thats pretty much a tank of fuel (so no stupid big engine etc) this costs the business roughly 4.5k per year. If we added an extra 3 pence onto my fuel cost this would increase by roughly £750.00. Which means the business would need an additional £1000.00 of revenue to cover this.
Extrapolate this across U.K business and it doesnt make good reading. Road tax is here to stay end of. I dont like paying it either, same as I dont like Council Tax but its there and thats that. They would only get the revenues elsewhere anyhow. Tax is Tax and without it we'd be living in chaos.