Increases
in fuel duty threatened for October 2008 will now take effect
on 1st December 2008 and
1st April 2009
In an opportunistic move, the Chancellor said "the reduction
in VAT from 17.5% to 15% lowers the amount of tax paid on motor
fuel. In addition, petrol prices have come down by 7 pence a
litre last month alone. So I will offset the VAT reduction by
increasing the duty by an amount which should keep the overall
cost to consumers the same this year. Of course, if we see a
stronger economy and increased tax revenues, we will review
whether we need to take these tax raising measures." Well
if you believe he would reduce them you must believe in fairies!
So that is an increase of 2p a litre on 1st December 2008 and
a further 1.84p a litre on 1st April 2009 on motor fuel. If
petrol prices were to remain at 92.9p a litre without the extra
duty, then these increases over the next five months would amount
to just over 3.5% or £57 for an MGV8 enthusiast doing
10,000 miles pa. |
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