wetfeet Posted November 25, 2008 Report Share Posted November 25, 2008 have a read of this its always the motorist who gets it in the neck A permanent 2p duty increase in fuel tax has been introduced in the pre-budget report, which despite being presented as revenue neutral, will mean that fuel prices will rise over the next year and beyond. The move to increase fuel duty by 2p has been introduced to offset the rate cut in VAT from 17.5% to 15%. However, although the VAT holiday will last 13 months, the 2p duty rise is permanent. When VAT returns to 17.5% motorists will still be paying the higher rate fuel tax of 52.35p per litre and the higher rate VAT, making tax 74% of the total cost of a litre of fuel, and instantly boosting the cost of fuel by 2p a litre. If the Chancellor had instead announced scrapping duty and VAT, a litre of petrol would cost just 25p. The changes are designed to be neutral, but calculations by PetrolPrices.com show that there will be a slight increase at the pumps of 0.4p a litre, or 20p per average 50 litre tank of unleaded when the changes come into effect on December 1st. The fact that fuel prices will increase at all is contrary to the message from the Chancellor that the changes will be revenue neutral. Motorists and businesses will effectively be bearing the brunt of the costs involved with implementing changes to help the UK as it heads into a recession. Fuel is taxed twice Quote Link to comment Share on other sites More sharing options...
bilc0 Posted November 25, 2008 Report Share Posted November 25, 2008 Your right wetfeet,this country is going down.Take what money you have and run a diffrent direction fast. Quote Link to comment Share on other sites More sharing options...
kinell Posted November 25, 2008 Report Share Posted November 25, 2008 Reducing the Vat rate from 17.5% to 15% was designed to help businesses, a pathetic attempt by the Gov't especially when they slap 2p on fuel duty to make up for it. We, along with every other Vat registered business in the UK will have to upgrade our accounts software, change our quote templates, amend our T&C's, write to our customers, update our website etc. etc. Then, in 13 months time we will have to change it all back again except the Vat rate will probably go to 19% or 20%. And, the 2p fuel duty will still be there. The Bollockticians reckon that consumers will spend more money at the shops, as they will save 2.5% Vat. Spend Quote Link to comment Share on other sites More sharing options...
b40rt Posted November 25, 2008 Report Share Posted November 25, 2008 Alister Ars*hole Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.