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MPs urged to hold off further fuel duty and tax rises to help recovery
publication date: Mar 16, 2011
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author/source: Robin Roberts
Over the past year, soaring pump
prices and the 2.5% increase in VAT on January 4 have added almost 5p a litre
to the Government's tax-take from VAT on petrol, says the AA.
VAT from diesel sales has risen nearly 6p a litre. An Opposition debate on VAT and fuel prices is expected to take place in Parliament today (16). VAT on a tank of petrol has gone up £2.47 in the past 12 months, meaning a family with two petrol cars has to pay an extra £10.49 tax a month to the Treasury. A litre of petrol, now costing on average 132.61p a litre, generates 22.10p in VAT, up 4.94p from a year ago. Petrol then cost 115.25p, with 17.5% VAT producing 17.16p a litre tax for the Government . VAT from diesel has risen from 17.29p a litre a year ago to 23.10p now, up 5.81p a litre, reflecting prices that average 138.60p now compared to 116.11p this time last year. Even if VAT had stayed at 17.5%, the tax-take over the year would have been 2.76p a litre higher for petrol and up 2.89 for diesel, courtesy of soaring prices. "The Government is enjoying an extra 2.18p a litre from petrol and 2.92p from diesel, following the VAT increase at the start of the year. The AA argues that stock market and Middle East-boosted oil prices are already bringing in substantial additional income for the Government - £1.34 million extra a day from petrol sales alone," says Edmund King, the AA's president. Type your postcode into the box below to find your cheapest fuel |
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