alchemist Posted January 7, 2011 Share Posted January 7, 2011 A passing remark on the radio this morning set me to thinking about VAT on fuel. The cost of fuel is made up basically of 4 parts, in order of its application. the cost of the actual fuel profit down the chain fuel duty VAT A significant proportion of the fuel is duty, which, despite the current claim that the government has ended its war on the motorist, is due to go up again soon. As VAT is charged on the final cost, how much of the VAT is on the duty. In other words, how much are we being taxed to be taxed? Are we now paying more VAT on the tax than on the actual fuel? Surely if the government were wanting to TRULY end the "war" on the motorist then they should be charging the VAT on the fuel, not on the total cost? Link to comment Share on other sites More sharing options...
retrogo Posted January 7, 2011 Share Posted January 7, 2011 The motorist has always been an easy target for taxation. whilst public transport remains expensive and inconvenient, people will always rely on their cars. The government takes advantage of this fact. If people do take to public transport because of high fuel prices, the government will claim its green policy has worked. Link to comment Share on other sites More sharing options...
andyofborg Posted January 7, 2011 Share Posted January 7, 2011 you could maybe argue that vat should not be charged on the duty but the rest should be vattable Link to comment Share on other sites More sharing options...
Pink2Bubble Posted January 7, 2011 Share Posted January 7, 2011 Considering the companies put fuel up as and when, maybe they should regulate the price of fuel. When the snow hit, the price of fuel went up 3-4p per litre. Bad weather went and the price stayed high so I cannot see why this rise came the day the weather hit. Now with VAT rise all have increased their price by 2-4p per litre which in effect is a rise of 5-8p per litre within about 6 weeks! Luckily Shell that I use the most only put 2p on when the VAT rise came but still...its made hell of a difference to how much I use. My job relies on fuel and increasing cost means less profit each week. If anything, the government need to review VAT and duty on fuel. (sorry being meaning to have a rant about this for a while!LOL) Link to comment Share on other sites More sharing options...
waldershelf Posted January 7, 2011 Share Posted January 7, 2011 Of course we are being ripped off the motorist is the perfect milch cow for every government. Link to comment Share on other sites More sharing options...
Mantaspook Posted January 7, 2011 Share Posted January 7, 2011 2011 Fuel Tax Figures A 0.76p increase on the 1st January 2011 brought the duty rate for the main road fuels up to 58.95p per litre, coinciding with the 2.5% increase in VAT rate to 20%. British drivers pay two taxes on petrol they buy at the pump and fuel campaigners complain about the fact that VAT is charged on the cost of fuel and the duty and feel it should only be calculated on the cost of the fuel for a fairer petrol price. Price breakdown (per litre.) 125.00p per litre = assumed typical current price. 43.44p Petrol Company costs (inc. profits) (34.7%) 10.82p VAT (20%) on the petrol costs. (8.7%) 58.95p Fuel tax (47.2%) 11.79p VAT (20%) on the fuel tax (9.4%) For every litre sold 81.56p (65.3%) goes to the government. To answer the original poster if you examine the above breakdown you will see that 11.79p per litre (9.4%) is indeed, a tax on a tax. For further details see Petrolprices.com Link to comment Share on other sites More sharing options...
Swan_Vesta Posted January 7, 2011 Share Posted January 7, 2011 In short, Yes. We're having our pants pulled down royally - The probem is that we stood for it during the good times and now we're up the creek we can guess what the answer will be to a decrease in fuel taxation. Link to comment Share on other sites More sharing options...
dizzy_chick Posted January 8, 2011 Share Posted January 8, 2011 I suppose it depends on your views on taxation... Link to comment Share on other sites More sharing options...
chem1st Posted January 8, 2011 Share Posted January 8, 2011 Just be grateful cars are not powered by tobacco. Link to comment Share on other sites More sharing options...
spindrift Posted January 8, 2011 Share Posted January 8, 2011 In search of the famous 'war on motorists' The only transport war being waged in this country is by motorists – against pedestrians and cyclists, http://www.guardian.co.uk/environment/georgemonbiot/2011/jan/04/war-on-motorists As an example of the war waged by the motorist, the revenue generated by car parking barely even covers the cost of pavement damage caused by motorists parking and driving on the pavement, that's before taking into account the cost of enforcement, revenue collection and the cost in injuries to pedestrians forced to use these facilities vandalised by the private motor vehicle owner. The space wasted on publicly subsidised car parking spaces could be put to better use as segregated bicycle and improving existing walking infrastructure which would reduce the "need" for on-street parking itself. As a non-motorist I resent the amount of taxpayers money which is spent subsidising private motor vehicle ownership and use, the routine lack of enforcement against antisocial behaviour by motorists, the suppression of walking and cycling through town and road design and lack of maintenance and the suppression of public transport by hypocritical policies regarding transport subsidy. Link to comment Share on other sites More sharing options...
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