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.
"We are hearing that Fuel Duty is to be frozen in the October 27 Budget, for the 11th year in succession. That will be a relief, not a celebration. Drivers being attacked by Clean Air Zones, LTNs, notably in London, the threat of the 2030 fossil fuel ban, the painful level of pump prices and being blamed for the environmental ills of the planet warrants a cut in Fuel Duty."
"In the last few days, over 40,000 FairFuelUK supporters have emailed the Chancellor and his Treasury Ministers calling for a significant cut in Fuel Duty. With the shock increase in National Insurance, the loss of £20 Universal Credit, the massive increase in energy prices, oil smashing past $86 and pump prices at their highest ever, any increase in Fuel Duty would be economically irresponsible, needless and a huge betrayal of newly won Tory converts outside of London."
"The Treasury knows full well that cutting Fuel Duty stimulates the Economy. In 2014 they said: ".... cutting duty will increase GDP in the long-term, business profits, wages, and consumption. And as such, all these positive fiscal stimuli will add to higher tax revenues...." In other words, cutting Fuel Duty is an economic stimulus!"
"A punitive rise in Fuel Duty does nothing to help climate change either."
"So, Rishi, please don't be conned by your urban based well paid special advisors, who see their fashionable green propaganda to justify a fuel tax hike, and to subsidise EV sales. Have the leadership mettle and wisdom to help the world's already highest taxed motorists, give them a break, at least maintain the freeze, but even better use the extra VAT you've enjoyed cutting Fuel Duty big."
*Article Source www.agilitypr.delivery