I am in the fortunate position that I do not have to drive anywhere near as often as I used to. Getting through a couple of tanks of petrol a week was not unheard of in my last role.
Therefore I have not been hit particularly hard by the steady rise in the price of petrol in the last year or so. So I tended to ignore it, like most social issues that do not directly affect me.
But, I recently filled up at a cost of over £60 for the first time, and after a long debate with the forecourt manager where he convinced me they had not, in fact, made a mistake, I decided to look into what makes today’s petrol so expensive. After all, the price of crude oil is dropping quite quickly at the moment.
An average 115p litre of unleaded petrol is broken down like this:
50.35p on fuel duty
37.35p on the product itself
17.13p on VAT
10.17p for the retailer
Now, I understand the arguments for fuel duties, I really do. Some of them I agree with, others I do not. What I do not understand however is how the Government can tax us on the tax we are already paying.
You see, I was under the impression that the VAT (‘Value Added’ Tax) should only be applied to that part of the price in which I am paying for, well, “additional value”? i.e. the product and the service that is delivered it to me? Whereas in effect they are benefiting twice by raising fuel duties, once with the duty itself, and secondly by the increased VAT charged upon it.
I hope someone out there cleverer than me can surely explain why this is not illegal?
Or maybe it is?
I just wish someone would hurry up and invent the solar powered BMW. Though they would surely find a way to tax sunshine the day that happens. It might not even be the first time.
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I so agree. I don’t care which government it is they are just thieves. Take the case of insurance which all governments want everyone to have for everything. 17.5% VAT !!! What are they on?
They can actually make a car that runs on water now – saw this on TV. So why not spend a bit on this cause? Answer: lots of politicians have interests in fuel shares. Obvious really.
I think the government is behind this one. Seriously.
The only reason I’m buying fuel these days is to make petrol bombs for when society crumbles. (next Tuesday, about half past 2 in the afternoon, if my calculations are correct)
It’s only about 1.06/7 up here in the Midlands though of course the downside of that is you actually have to come to the Midlands in the first place.
I’ve always wondered about the tax on tax bit myself and have unable to see how it is anything other than simple thievery.
The trouble is we give Parliament too soft a ride these days we really ought to start bumping a couple of them off every few years to keep them focussed.
‘Though they would surely find a way to tax sunshine the day that happens.’
Try road pricing.
STB.
Thanks for the heads up, I had better patent the sun as belonging to me.
The government are always sneaky when it comes to what they consider taxable.
I once bought some cheap plastic parts from a store in America. They sent them via Fedex, which wasn’t cheap. And the import duty was massive because they taxed me for the shipping costs as well.
Bastards.
Clearly the moment solar powered cars come into play, the government will find a way to tax the sun use.
But that’s what the government does. They are the robber barons of our time.
My favourite is taxing the interest you earn on the thruppence ha’penny you managed to save off the wages you earned that you paid taxes on.