£1 a litre

The main thing that annoys me about fuel duty is it's a tax on the poor who are the people least able to bring about change through political influence.

People like myself with a fuel card don't notice the rises. People who are high earners £80k+ don't notice and don't care about £1 here or there.

People who make minimum wage really do care about a couple of £ either way as it makes the difference between heating the house or not.
 
Over Clocker said:
Interesting to see so many people blaming the recent increase in petrol prices on higher taxes, when the tax of petrol actually hasn't risen for years.

Yes the higher cost compared to most other countries is due to higher fuel duty, but it is not to blame for this recent rise!

Mal
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You pay VAT on fuel alongside the other huge tax placed on it. VAT is 17.5% of net cost, hence higher prices = more Tax.
 
Over Clocker said:
Yes the higher cost compared to most other countries is due to higher fuel duty, but it is not to blame for this recent rise!
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The rise would have been insignificant without the high levels of taxation we pay.

The oil price could double to $140 a barrel and if we were not taxed so harshly on fuel we'd still be paying less than we are now...

I don't understand why we have to pay VAT on fuel. It's already taxed - infact its worse than that, we pay VAT on the cost of the fuel AND the fuel duty.
 
YOu could also argue that had our tax on petrol been lower, for example in the USA, the actual percentage increase in pump costs would have been more?

Don't get me wrong, I am in no way advocating the high tax on petrol here!! Just throwing another angle on this discussion.

PS, isn't VAT on fuel 5%, or does that only apply to domestic household fuel?

Mal :)
 
Over Clocker said:
YOu could also argue that had our tax on petrol been lower, for example in the USA, the actual percentage increase in pump costs would have been more?
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In what way would that have been worse?

So you are saying paying £1 a litre is better than paying 40p a litre and having fuel prices double to 80p a litre?

What confusing logic.
 
So we cut the duty on fuel? Then where is the tax revenue shortfall made up? On income tax? Not really fair on people without cars.

Provided the money raised from fuel duty is used on motor related causes (which includes the NHS) then I don't have a problem with the amount of duty.

I'm a student and I manage.
 
[TW]Fox said:
In what way would that have been worse?

So you are saying paying £1 a litre is better than paying 40p a litre and having fuel prices double to 80p a litre?

What confusing logic.
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Excuse me but where did I say it was better???

I was merely throwing another dimension to this.

Also, if the duty on fuel were to be cut, it would have to be made up elsewhere.

Mal
 
[TW]Fox said:
We could stop paying people to sit at home and watch Sky TV perhaps..
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That's fair enough. But fuel tax raised £25 billion in 2001 alone. Even if the benefit cheats were stopped completely it isn't going to raise anywhere near this amount. Plus it would be unfair on the non-motorist. They should also receive a tax break shouldn't they?
 
Jet said:
That's fair enough. But fuel tax raised £25 billion in 2001 alone. Even if the benefit cheats were stopped completely it isn't going to raise anywhere near this amount. Plus it would be unfair on the non-motorist. They should also receive a tax break shouldn't they?
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Why should fuel tax fund anything other than the negative externalities related to that fuel?
 
Jet said:
That's fair enough. But fuel tax raised £25 billion in 2001 alone. Even if the benefit cheats were stopped completely it isn't going to raise anywhere near this amount. Plus it would be unfair on the non-motorist. They should also receive a tax break shouldn't they?
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It would be ridiculous to suggest fuel tax should be abolished entirely. Everyone understands the need for fuel tax.

But it could at least be inline with that of our neighbours - or perhaps they could abolish VAT on fuel, or at the very least, only charge VAT on FUEL rather than FUEL + DUTY.
 
TBH the tax situation isn't going to change any time soon. Mr Brown already has a deficit in his spending so any cut in duty will make it worse.

It's a typical Labour situation. Spend spend spend. Give it a few more years and it will be tax tax tax to make up for all the spending.

Won't be long before we have a supertax bracket for people who earn over £65k
 
Scottie2004 said:
In glasgow, chances are you'll get stabbed using public transport. The morons I've encountered on busses would put you off for life.
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ahh yes ... i remember getting on the 89, and the 90 going right around the city, and chavs at Parkhead having a barney up the top, at the back ..

happy days


:)
 
flat-6 said:
Good, about time, although 100k perhaps more realistic.
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Screw the people who work the hardest yea that sounds very New Labour actually :)

After all, I doubt many of the ultra high earners are labour voters anyway..
 
NickXX said:
Hmm, that's pretty rubbish.

It's €1.10 a litre of Diesel over in France (~75p), probably cheaper as you get closer to big cities. What on earth justifies the 33% extra tax between here and France :confused:
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the better road network,,
oh wait..
 
NickXX said:
Why should fuel tax fund anything other than the negative externalities related to that fuel?
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It shouldn't but how are benefit cheats related to fuel tax? If we reduce benefit fraud, as Fox says, then that bonus should be shared by every taxpayer, not just the motorist. I personally think all money raised in fuel tax should be used on improving the transport system. But remember, the NHS will suffer as a result of car crashes etc, so the NHS getting a portion of the money is still fair.

[TW said:
Fox]It would be ridiculous to suggest fuel tax should be abolished entirely. Everyone understands the need for fuel tax.

But it could at least be inline with that of our neighbours - or perhaps they could abolish VAT on fuel, or at the very least, only charge VAT on FUEL rather than FUEL + DUTY.
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It's impossible to compare our fuel bill with other countries. The road transport systems are a lot different and we don't know whether France, for example, have increased their income tax, or other tax, to make up the shortfall. The government knows how much money is needed, and the tax they amount required. Whether they waste money or not is another matter. It's not an argument against road tax though.

The same argument goes for VAT on fuel. If they changed the system there would be a shortfall which would have to be made up.
 
Jet said:
It shouldn't but how are benefit cheats related to fuel tax? If we reduce benefit fraud, as Fox says, then that bonus should be shared by every taxpayer, not just the motorist. I personally think all money raised in fuel tax should be used on improving the transport system. But remember, the NHS will suffer as a result of car crashes etc, so the NHS getting a portion of the money is still fair.



It's impossible to compare our fuel bill with other countries. The road transport systems are a lot different and we don't know whether France, for example, have increased their income tax, or other tax, to make up the shortfall. The government knows how much money is needed, and the tax they amount required. Whether they waste money or not is another matter. It's not an argument against road tax though.

The same argument goes for VAT on fuel. If they changed the system there would be a shortfall which would have to be made up.
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Doesnt the insurance company pay the nhs for medical bills?
 
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