Government Takes Motorists for a Ride on Petrol Tax

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In the run-up to another wave of protests over fuel prices, the ABD today pointed out a simple measure the Government can take to reduce pump prices and avoid the disruption of further blockades: cease the outrageous practice of charging a tax on a tax.

The retail price charged to motorists for fuel is arrived at by taking the cost of the fuel itself, adding fuel duty - and then adding VAT to both the fuel cost and duty amount. This means that one tax, VAT, is charged on another tax, fuel duty.

ABD fuel tax spokesman Tony Vickers pointed out: "8.24p in every litre is VAT paid on fuel tax - a tax on a tax. The government could reduce pump prices by 8.24p per litre simply by ending this practice."

For more information about the ABD visit their Website at http://www.abd.org.uk

The Association of British Drivers is run on a voluntary basis to lobby for the beleaguered British motorist: "Reclaiming the roads for the people who pay for them" "Demanding proper roads (and railways) in exchange for paying one seventh of all taxes" "Debunking the nonsense you hear about the environmental impact of the car" "Promoting effective road safety instead of the criminalisation of safe driving"

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