The government has been urged to scrap the tax disc and introduce multi-year road tax to save cash.
Industry body the BVRLA says that licence-plate recognition technology has rendered tax discs redundant, and scrapping the annual discs could save the DVLA £90m a year in printing fees.
And new VED rates, including the so-called showroom tax that hits polluting cars with a more expensive first year road tax rate, could mean a rise in tax disc theft.
“Not having to display a tax disc would bring us into the 21st Century and reduce the burden on fleet owners, who would no longer have to distribute them to drivers or retrieve them when they were seeking to obtain a refund," said BVRLA chief executive, John Lewis.
Meanwhile the BVRLA says multi-year VED would save the industry up to £5m in administration costs each year, as well as improving the cash flow to the Exchequer and reducing workload at the DVLA.
“Having previously shared our proposals with the DVLA, we know that it is equally keen to see this measure pursued," Mr Lewis added.
The group also wants an end to the current 3 per cent diesel supplement in benefit-in-kind tax for company cars and fuel.
“Removing this historically out-of-date, pollution-related penalty would accelerate further corporate adoption of these vehicles and help to push company car emissions even lower," said Mr Lewis.
“We accept that, in the current economic climate, there may be a need to make compensatory adjustments to the benefit-in-kind base lines in order to maintain the tax take."