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Make fuel taxation more transparent

Comment 4th July 2010

Ever since before even the first fuel protests several years ago, it's been claimed that 60 – 80% of the cost of Petrol & Diesel fuel consist of taxation (depending on how good the maths of the person making the claim is).

One claim in a comment I saw over on John Redwood's excellent blog during the months leading up to the recent general election suggested that the real cost of petrol at the time was 44p a litre.. the other 76p of a £1.20 litre of fuel being the taxes being slapped on top.

Pretty much everyone (apart from the bean counters in the treasury) seem to thing the double taxation (duty + VAT) is unfair, and the taxation level takes the mickey (actually most people use a much stronger word than "mickey").

My solution is:

  • Scrap Fuel Duty
  • Scrap VAT on fuel
  • Replace both with a single "Fuel Sales Tax" ("F.S.T") to make it more transparent
  • Include a "Rural Relief" on the Fuel Sales tax in rural areas with sub-standard public transport services (perhaps in the form of a card similar to a "NECTAR" card or "BOOTS Advantage" card?)
  • Include an "essential services relief" on the Fuel Sales Tax to ease the fuel burden on Emergency Services, Public Transport operators & Hauliers.

 

Why does this matter?

People have been complaining about both the level of taxation on fuel + getting confused with exactly how much of a percentage the cost of fuel is made up of tax for a number of years now…… according to Wikipedia the first fuel protests first started in 1999/2000…. so it's about time something was done to solve the problem, and try ease the burden.

http://en.wikipedia.org/wiki/Fuel_protests_in_the_United_Kingdom

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