VAT on Fuel

Discussion in 'Current Affairs, News and Analysis' started by CaptainPlume, Mar 5, 2010.

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  1. Have done a quick search to see if this is covered anywhere & couldn't see so here goes.

    When the VAT rate was cut from 17.5% to 15% the Treasury put 2% on Fuel Duty to try & recoup some of the losses. Now VAT has gone back up to 17.5%, but the rise in Fuel Duty has not been removed.

    FWIW there's an online petition protesting against this here (clicky).

    Really reminds me of this:

    Let me tell you how it will be;
    There's one for you, nineteen for me.
    'Cause I'm the taxman,
    Yeah, I'm the taxman.

    Should five per cent appear too small,
    Be thankful I don't take it all.
    'Cause I'm the taxman,
    Yeah, I'm the taxman.

    If you drive a car, I'll tax the street;
    If you try to sit, I'll tax your seat;
    If you get too cold, I'll tax the heat;
    If you take a walk, I'll tax your feet.

    Don't ask me what I want it for,
    If you don't want to pay some more.
    'Cause I?m the taxman,
    Yeah, I'm the taxman.

    Now my advice for those who die, (taxman)
    Declare the pennies on your eyes. (taxman)
    'Cause I'm the taxman,
    Yeah, I'm the taxman.
  2. The 2pence rise was in the budget pre VAT cut so was going to happen either way. In April we are due for another 2ppl rise along with the cut in rebate on the biofuel component of road fuel (20ppl). The RTFO will see a rise in the amount of Bio needed in pump fuel over the next year, so more expensive components will enter the fuel stream making the fuel more expensive anway. In April there is the possibility of a 4ppl rise that is down to nothing more than taxes.

    it will only get worse my friend. For budgets sake, never bet on fuel getting below 115pl by the end of the year.
  3. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    At the Budget last year, CHX announced that excise duties on oils would increase wef 01/09/09. The change in the VAT rate was coincidental, and the reinstatement of the 17.5% rate was never going to see the additional £0.02ppl being rescinded.

    You can expect (a) the petition to get nowhere, and (b) the next budget to include an increase in the rates of excise duties on road fuels and heating oils (marked gas oil).
  4. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

  5. Taking myself off for a good whipping - this was a repost from another board.

    Still, motorists do get raped by the Treasury do they not?
  6. Oh man. Petrol going up? Insurance going up? Road tax going up? Man - if ONLY there was some way I could cut all these costs out of my budget.

    oh, actually.........
  7. I did. I scrapped my car as it was no longer finacially viable for the use I got out of it :(
  8. It's not the private drivers that get kicked for this, it's the companies that rely on vehicles to move goods. Keep increasing their fuel prices and they go bust, so pay less tax, so there is less money in the budget.

    Inept managment under the guise of, well, ineptness.
  9. How about some form of Internet site where one could go and compare different quotes from many insurers? That would help wouldn't it? Surely it can't be too difficult for some clever programmer to work out how to do it.
    Why's no-one thought of it before?

    I suppose it'd be a bu**er to advertise though - it's a difficult concept to get across in 10 secs so they'd probably have to rely on talking puppet animals!
  10. There isn't: you pay for those costs every time you buy something.
    Transport costs can be the difference between success and failure for many small (and some not so small) businesses. Unfortunately, government policy makes it increasingly difficult for people to start or continue their own business - which isn't good for the economy, especially in times of high unemployment.
  11. Genius! Why didn't I think of rendering myself immobile or beholden to a crappy and expensive public transport system before?
  12. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    I saw what you did there.....

    simples :twisted:
  13. Thank you - that is one of the funniest and well-thought out posts I have ever seen on here.

    Tickled me, it did.
  14. Really? How about you locate yourself close to your suppliers and customers? Improve your processes to use less inputs? Develop knowledge-value products? Share delivery costs (and therefore emissions blah blah blah) with other businesses?

    Porter mean anything to you? Five forces? Diamond? Value chains?

    Government policy is (in this instance) driving us to look at different ways of doing business. I would predict (yes, that thing I normally shy away from) that in the future a huge number of small businesses will grow and increase in size by following the very path I have mentioned above. Those that don't will, as you have identified, fail.

    Man, change is a killer, eh?
  15. Having had my own car for ten years I got rid of it three years ago. I save (about) two hundred quid a month, I am less stressed, have a full social life. All by thinking about how I do things and altering my life to make it work for me. As another respondent states: