12.03.08 BUDGET UPDATE: 2p duty rise delayed until October
The Chancellor Alastair Darling has backed down on plans to increase fuel duty by 2p in his budget speech. The 2p increase has been delayed until October 2008, but not scrapped entirely. It is unclear what will happen to the 2p rise that was already planned for October.
Delaying the 2p rise in duty is simply not good enough. With each week setting new price records, and motorists and businesses finding it increasingly difficult to afford fuel, it is imperative that Mr Darling doesn't just delay the 2p rise, but scraps it altogether. Motorists have had to suffer a 20% rise in the cost of fuel in the last year alone due to spiraling oil prices, but the treasury has in fact benefited from this because VAT is added on top as a percentage of the cost and duty.”
The Chancellor could easily afford to scrap the rise completely – estimates suggest that the rise would have earned the government around £1 billion, but he's already earned an extra, unbudgeted £1.2 billion just because of the rise in oil prices in the last year.
Delaying the rise rather than scrapping it is an insult to the intelligence of the British public. Mr Darling is hoping that we'll forget about the rise, so he can bring it in again later when there won't be as much of a public outcry.








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I have just had a thought!
Why are we being charged VAT on Excise Duty? Look at the logic:
VAT stands for value added tax. There is no extra value given to the product by imposing a duty upon it. The value is added by the costs of distribution and handling.
We should not be paying VAT on top of duty; only VAT on the cost of the fuel alone.
I know there is custom and practice, but it is about time the Government got honest, if that is at all possible, and our fuel reciepts should show cost of fuel, VAT on fuel, and duty on fuel NOT VAT ON DUTY.
Anyone with me on this for a legal challenge?
Brian
I thought the 2p on fuel was to be delayed until October! How come then that all petrol stations seem to have already added 2p to the price?? Is this so that even more can be added come October? When is the demonstration, give us plenty of notice and Im sure people will turn up in force!!!
Oil prices are shooting up globally - prices will rise and continue to rise around the world: not just in the UK. Petrol companies have to keep on putting up their prices to pay for the fuel wholesale. It really is that simple. It's no different to gas and electricity. The alternatives we have are to start using bicycles or to just get on with it. If fewer people drove around in 4x4s and drove more fuel-efficient vehicles there would be less demand for fuel which would lower prices or at least curb the rate that prices are increasing.