New Tax Disc & Civil Liberty or Just Paranoid?

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So I completed the DVLA tax disc form and signed it. I then toddled down to the Post Office with it and my 165 quid, MOT and insurance.

The new tax disc has a bar code that ties it to the bar code on the application form and has a hologram to presumably prevent forgeries.

The Post Office told me that the new system meant that they no longer needed the form and gave me back the signed declaration which I thought was strange?

Remote reading of the tax disc allows it to be electronically checked against the vehicle on which it is displayed and also provides all the registered owner's personal information held by the DVLA.

I realise that everyone should be encouraged and even compelled to pay their tax disc, but is this new tax disc system overkill?

With all these new cameras, robotic vision and now tax disc readers, am I becoming paranoid or is the UK becoming like 1984?

Can anyone reassure me?