Fuel Duty Reform

Petrol and diesel prices in this country are prohibitive and totally out of order.

Reform Fuel Duty so that if the price is variable and a fuel tax sliding scale needs to be applied.

If it is more than 35p per litre (say 40p) pre-retail then the Government tax take will be 60% share of the overall £1.

If it is more than 25p per litre (say 30p) pre-retail then the Government tax take will be 70% share of the overall £1.

If it is less than 25p per litre pre retail (say 20p) then the Government tax take will be 80% share of the overall £1.

This will keep the cost of fuel roughly about £1 per litre allowing for varying fuel and tax prices.

Why is this idea important?

Petrol and diesel prices in this country are prohibitive and totally out of order.

Reform Fuel Duty so that if the price is variable and a fuel tax sliding scale needs to be applied.

If it is more than 35p per litre (say 40p) pre-retail then the Government tax take will be 60% share of the overall £1.

If it is more than 25p per litre (say 30p) pre-retail then the Government tax take will be 70% share of the overall £1.

If it is less than 25p per litre pre retail (say 20p) then the Government tax take will be 80% share of the overall £1.

This will keep the cost of fuel roughly about £1 per litre allowing for varying fuel and tax prices.

End the huge cost of managing Car Tax Disc by increasing tax on petrol.

End the huge cost of managing, issuing and policing Car Tax Discs by increasing tax on petrol.

This would mean the more you use your car / Vehicle the more you pay.

Why is this idea important?

End the huge cost of managing, issuing and policing Car Tax Discs by increasing tax on petrol.

This would mean the more you use your car / Vehicle the more you pay.

Make fuel taxation more transparent

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 is this idea important?

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.

 

Move road duty and insurance into petrol prices

Remove separate road duty and provide 3rd party only insurance paid as part of the duty on petrol prices.  This would involve a raise in the price of petrol, but is the ultimate pay as you drive charging mechanism without having any heavy process/technology involved.  The more you drive, the more you pay, the more inefficient your vehicle the more you pay.  

This removes all un taxed and un insured vehicles from the road.

Clearly most drivers would still buy insurance to provide comprehensive cover of vehicles.

Why is this idea important?

Remove separate road duty and provide 3rd party only insurance paid as part of the duty on petrol prices.  This would involve a raise in the price of petrol, but is the ultimate pay as you drive charging mechanism without having any heavy process/technology involved.  The more you drive, the more you pay, the more inefficient your vehicle the more you pay.  

This removes all un taxed and un insured vehicles from the road.

Clearly most drivers would still buy insurance to provide comprehensive cover of vehicles.

Road Tax To Be Put On Petrol

Road Tax To Be Put On Petrol

No one will be able to avoid not paying Road Tax any more as the people need petrol to run their cars. 

Even working on the current banding using the engine size, for example the 4×4 need more petrol so will be paying more tax when they fill up at the pumps.

Why is this idea important?

Road Tax To Be Put On Petrol

No one will be able to avoid not paying Road Tax any more as the people need petrol to run their cars. 

Even working on the current banding using the engine size, for example the 4×4 need more petrol so will be paying more tax when they fill up at the pumps.