Monday, March 3, 2014

Quentin Willson, Lead Campaigner for FairFuelUK said: Having the highest duty for diesel and second highest for petrol in the EU is a cruel and needless burden on the millions who have no option but to commute to work and shop for essentials by car. This is why so many complain they’re spending so much of their incomes on mobility. A fuel duty cut of 3 pence in the March Budget would hugely benefit everybody in the UK, but especially the poorest.”

 

Howard Cox, Co-Founder of the FairFuelUK Campaign said: “The Chancellor, Mr Osborne has been previously receptive to our campaign in his 2011 Budget by cutting Fuel Duty by 1p and then following this up by freezing it in the life of this Parliament. But does he want to hide the staggering fact that the UK still has the highest level of taxation on road users in the EU for diesel and the 2nd highest for Petrol. He currently takes considerably more at the pumps for diesel in tax than any other EU Finance Minister. Our call for a 3p duty cut would mean that the UK would drop to 18th in the EU 'tax take' for petrol and 9th for Diesel.  We have also shown that such a Fuel Duty cut would be self-financing and a vote winner. This punitive tax on UK road users has to slashed!”

 

  • From the RAC Foundation tables shown below it is clear that the powerhouse economies of the EU also subsidise diesel prices through lower taxation vs petrol. Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Lithuania, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain all price Diesel less than Petrol through lower fuel duty. They recognise that such a tax subsidy helps businesses and the economy. Why doesn’t the Treasury do the same for UK hauliers, the engine room of the economy?
  •  Petrol and Diesel are unavoidable essential costs for millions of motorists and businesses. 90% in employment said they have no choice but use their car to go to work and 44% also use their vehicle at work itself. 60% use their car every single day. 1 in 10 SMEs are making staff redundant and 2 in 10 have stopped recruitment because of the high price of fuel. (From FairFuelUK Poll of 25,000)
  • The Treasury has still to refute the economic modelling we presented in 2013. FairFuelUK commissioned a report from the National Institute for Economic and Social Research (NIESR). They clearly demonstrated that a cut of just 3p in Fuel Duty will generate Growth in GDP of 0.2%, generate 70,000 new jobs and lower inflation even further. The overall reduction in the fiscal position would be significantly less than the Treasury has repeatedly claimed. This pattern of economic benefit to the country’s return to growth, because of such a significant cut in Fuel Duty, was also unambiguously proven in another study we commissioned by the Centre for Economic and Business Research (CEBR). There is no doubting the substantial eminence of these FairFuelUK studies as both of the reports' authors are frequently used by the Treasury for their own economic modelling.

1. Below are the current levels of taxation on road users for Petrol across the EU as supplied by the RAC Foundation.

Tax Take

Country

Unleaded Retail Price

Unleaded Duty & Tax %

1

Sweden

£1.24

61.86%

2

UK –Current Level

£1.30

61.42%

3

Neth'lands

£1.46

60.65%

4

Greece

£1.36

59.86%

5

Italy

£1.46

59.02%

6

Ireland

£1.25

58.71%

7

Finland

£1.31

58.58%

8

France

£1.23

57.64%

9

Germany

£1.31

57.05%

10

Slovakia

£1.18

56.46%

11

Slovenia

£1.19

56.15%

12

Belgium

£1.33

55.37%

13

Portugal

£1.31

55.32%

14

Denmark

£1.41

55.14%

15

Austria

£1.12

52.96%

16

Czech R.

£1.09

52.73%

17

Croatia

£1.10

52.65%

18

UK - with 3p Cut*

£1.26

52.33%

19

Hungary

£1.09

51.33%

20

Latvia

£1.06

51.10%

21

Malta

£1.18

50.63%

22

Lithuania

£1.07

50.61%

23

Spain

£1.16

50.33%

24

Poland

£1.04

50.25%

25

Cyprus

£1.16

49.94%

26

Estonia

£1.07

49.09%

27

Lux'bourg

£1.07

48.51%

28

Romania

£1.09

47.70%

29

Bulgaria

£1.05

44.95%

 

2. Below are the current levels of taxation on road users for Diesel across the EU as supplied by the RAC Foundation.

Tax Take

Country

Diesel Retail Price

Diesel Duty & Tax %

1

UK – Current Level

£1.37

59.09%

2

Sweden

£1.24

56.04%

3

Italy

£1.38

54.72%

4

Ireland

£1.21

52.51%

5

Slovenia

£1.09

51.57%

6

Finland

£1.23

50.15%

7

France

£1.09

49.90%

8

Neth'lands

£1.24

49.65%

9

UK -  With 3p Cut*

£1.33

49.58%

10

Germany

£1.17

48.88%

11

Hungary

£1.13

47.79%

12

Austria

£1.09

47.52%

13

Czech R.

£1.10

47.27%

14

Cyprus

£1.18

47.20%

15

Belgium

£1.19

46.81%

16

Slovakia

£1.11

46.61%

17

Croatia

£1.04

46.42%

18

Denmark

£1.28

46.36%

19

Malta

£1.12

46.31%

20

Poland

£1.05

46.06%

21

Estonia

£1.10

45.90%

22

Portugal

£1.15

45.01%

23

Latvia

£1.04

44.94%

24

Spain

£1.10

44.92%

25

Romania

£1.12

44.77%

26

Greece

£1.13

43.70%

27

Lithuania

£1.05

43.21%

28

Bulgaria

£1.07

41.96%

29

Lux'bourg

£0.98

41.08%

*  The 3p Fuel Duty cut shown also has to have VAT at 20% added. As the Treasury double taxes fuel the Total Tax cut benefit will therefore be 3.6p and rounded to 4 pence / litre




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