Monday, 27 February 2012

More Misery As Coalition Rule Out Cuts To Fuel Duty

As Petrol Prices Rocket, The Goverment Makes More In VAT

George Osborne has all but ruled out any cut to fuel duty in the Budget.

Of the current average pump price of 135.4p a litre, around 81.2p is taken in tax (58.6p is fuel duty and 22,6p is VAT) - a de facto tax rate of 149.9 per cent. Some stations are now selling at 150p a litre.

But with petrol more highly taxed in Britain than in almost any other country, how on earth are hard-working families and businesses supposed to afford these eye-watering prices?

Petrol Already At £1.50 A Litre On Some Forecourts
And with continuing troubles in the Middle East and Nigeria and pressures elsewhere, it looks like the misery is likely to get worse while the "millionaire row" cabinet turn a deaf ear. Before the election, the Tories promised a "fair fuel stabiliser", which would reduce the level of tax when crude oil prizes rose. But not now.
Currently, VAT is charged at the standard rate. So as the price of fuel rises, the amount of VAT taken by the taxman also rises.

So come on Chancellor, announce a temporary cut in VAT and give us all a break!

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