Fuel And Our Government. How Does That Work?

[ringway]

Drivers put less tax into Treasury




Cash-strapped drivers are generating less tax for the Treasury despite a rise in fuel duty, AA figures have revealed.

Drivers put less tax into Treasury.



Falling petrol and diesel sales in the first three months of 2009 produced £97.3 million, or 2%, less in fuel duty income than in the same period last year. This fall came despite a 2p a litre, or 4%, rise in fuel duty on December 1 2008.




The AA said that despite a dip in the price of fuel at the pumps, UK forecourts sold 212,000 fewer tonnes of petrol and 220,000 fewer tonnes of diesel in the first three months of this year compared with January-March 2008.

The AA added that comparing first quarter (January-March) fuel retail sales during the past four years of high oil and fuel prices, the Treasury has been getting a diminishing return from increased fuel duty.

Comparing 2006 with 2007, fuel duty rose 2.65% and tax revenue increased 6.77%. However, the 2007 and 2008 comparison shows that fuel duty rose 4.14% but tax revenue increased 6.50%.

AA president Edmund King said: "Quite simply, what is the point of raising fuel duty if it helps push the price of fuel to a level that more and more drivers can't afford? The Government gets less tax and a large section of the electorate gets riled.

"Would it not make more sense to freeze or even reduce fuel duty while drivers and families are struggling, particularly if the public purse isn't getting any benefit from duty increases?"

He went on: "With the 1.84p increase this past April and another 2p coming in September, fuel duty will be up to 56.19p a litre during the next first quarter - helping to push the norm for petrol closer to the psychologically-important £1 a litre.

"Escalating fuel prices, particularly once the global economy gets back on its feet and energy demand returns, is likely to undermine the tax potential from fuel duty as drivers cut back. The Government can claim that this is good for the environment, but higher prices and depression are already doing the job without having to increase the tax burden," he said.

 

[ringway]

I Think They Call It A Sale.

In our company, if we need to generate increased sales, we offer our products and services at a lower price.

10% of something is better than 0% of nothing as they say...

If Mr Brown and co had any business acumen, would this not be the way forward?

 

[lynall]

I reckon quite simply people havent got the money so are not using their cars and are doing stuff local to them, but there does seem to be a lot of small cars about i suppose using less fuel.

One thing i have always noticed when i fill my car up which i hate doing never sees garage until light comes on, is whilst i am filling up people turn up after me stick £5 or £10 worth in pay and leave before i have finished filling up.

Plus when enough people drive small cars the gov will have to put up the price of fuel as their tax revenue will fall overall.



Lynall

 

[Shude]

People might also be driving more smoothly in order to consume less fuel, I know I am! 10mph lower on the motorway can make a huge difference to the MPG.

 

[verytalldave]

In our company, if we need to generate increased sales, we offer our products and services at a lower price.

10% of something is better than 0% of nothing as they say...

If Mr Brown and co had any business acumen, would this not be the way forward?

Now that made me laugh.......................

Assuming that Brown and Co might have had a degree of business acumen.

I am afraid to say that most politicians have virtually zero business acumen and almost no grasp of the real world situations.

Apart from the odd soundbite they may be forced into spewing, most of what they say is crafted by teams of scriptwriters and their "policies" dreamt up by even bigger teams of civil servants.