With the highest prices at the pumps ever recorded, the Chancellor in the last 12 months has benefitted to the tune of an extra £1bn in VAT from the World’s highest taxed drivers filling up.
Pump prices have increased by 28p in the last 12 months giving an extra 4.66p per litre to the Exchequer. With 40bn litres of petrol and diesel sold each year that means an extra £1.86bn of VAT based on current pump prices. But by extrapolation the gradual increase in pump prices, and because businesses can reclaim VAT costs, we have calculated the extra VAT windfall to the Treasury is closer to £1bn.
It means, the Chancellor could cut Fuel Duty by 3p per litre and still benefit from extra VAT pouring in.
“A punitive rise in Fuel Duty does nothing to help climate change either.”
|
European Fuel Tax Takes – September 2021 |
Background: Since 2011 the APPG for Fair Fuel for UK Motorists and UK Hauliers has examined major issues that impact on UK drivers. Along with FairFuelUK, it has been a major influencer on keeping Fuel Duty frozen since 2011. As well as fuel taxation, other issues addressed by the APPG that impact on drivers, have included congestion charges, ULEZ/CAZs, parking costs, roads investment, unfair treatment for fossil fuelled vehicle owners, solutions to lower emissions, cleaner fuel incentives, alternative technology options and transparent pricing at the fuel pumps with a continual call for PumpWatch. With the expected decline in Fuel Duty revenue, the APPG will also formulate a long-term approach to the future of road taxation and a positive transport strategy for all road users. https://fairfueluk.com Since 2010 FairFuelUK has saved drivers over £110bn in planned tax hikes in duty and VAT through constructive and objective campaigning. Had FairFuelUK not campaigned to scrap the fuel duty escalator, fuel tax today would be 90p/lt rather than 57.95p/lt. Today we would be paying £1.80+ per litre at the pumps had FairFuelUK not fought for the World’s highest taxed drivers. Because of the Campaign, inflation is down 6.7% and £24bn has been put back into consumer spending each and every year since 2011. FairFuelUK is a public affairs team with no shareholders to satisfy, just an award-winning campaign representing the real concerns of hard-working motorists, families, small businesses, commercial drivers and hauliers across the UK. Decades of fiscal exploitation by successive Governments with little in return, warrants the need for FairFuelUK. For 10 years, this award winning campaign has been backed by the RHA, Logistics UK, other respected organisations, 1.7m supporters and 146 MPs) . FairFuelUK is fronted by the Campaign’s Founder Howard Cox. Funding is through support from key founding backers the FTA (Logistics UK), RHA and regular donations from supporters. Previous backers have included the RAC, Association of Pallet Networks, UKLPG and others. |
Help keep news FREE for our readers
Supporting your local community newspaper/online news outlet is crucial now more than ever. If you believe in independent journalism, then consider making a valuable contribution by making a one-time or monthly donation. We operate in rural areas where providing unbiased news can be challenging. Read More About Supporting The West Wales Chronicle