The car tax disc is to be scrapped – after 93 years in existence.

The tax disc, which is placed on the inside of a car windscreen to show that motorists have paid vehicle excise duty, is to be replaced with an electronic system, the government’s Chancellor of the Exchequer George Osborne is to announce in his Autumn Statement today.

The disc was introduced way back in 1921, but officials are insisting it is no longer needed, with the DVLA and police now relying on an electronic register.

Government officials say that the new electronic system will allow people to pay the charge by monthly direct debit.

The Treasury said it showed government was moving ‘into the modern age’.

At present, motorists are able to choose whether they pay their road tax in 12 or six month instalments. The latter option costs 10% extra each year, but this is expected to be cut to 5%.

The new option of paying by monthly direct debit is also expected to cost 5% more than paying for a full year in one go.

The changes are expected to come into effect in October 2014.