Oct 2008

Government hypocrisy…?

Petrol is currently about a pound a litre. The Government is still blasting the suppliers for putting the pirces up so high. Here’s the problem though…

Fuel duty is currently 53p/l.
VAT on a product that retails at a pound is 15p.

Total tax on your pound of petrol is 68p.

9p of the remaining 32p goes to the petrol station (of which at least a penny will go in various taxes, including tax on wages)

The last 23p goes to the supplier (who in turn will pay a large chunck as tax).

So, we’re now up to at least 70p of the 99.9p ending up at the exchequer for one reason or another. 70%. Or, if you’d prefer to think of it all as a value added tax, that works out as about a 300% value added tax…

Makes you proud, doesn’t it?

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