U-turn on car tax and fuel duty increases
Alistair Darling is ready to delay fuel duty rise
A report by James Kirkup in the Daily Telegraph today notes Alistair Darling gave his clearest signal yesterday that he was prepared to drop plans to increase duty on petrol. Speaking in Scotland yesterday, the Chancellor all but admitted that if fuel prices remained high in the autumn, when the 2p increase was due to come in, he would not apply the rise. The report notes Mr Darling saying "there is an increase due in October. I will look at that closer to the time and if I judge it right I am prepared to postpone that increase again." More (31.5.08)

Treasury profits as price of oil soars

Various spokespeople for the Government have bleated on that concessions on the fuel duty increase and the removal of the stealthy retrospective car tax increases cannot be afforded at present, but that simply ignores the much greater tax take the Government is receiving from North Sea crude oil >>
>> production and VAT on increased fuel prices at the pumps. But how much more tax is the Government receiving? Well another report in the Daily Telegraph back in early March reported "the accountants Grant Thornton have estimated that the Treasury was earning £9.4 million a day more than it expected when it did its forecast on revenue from fuel duty and taxes on North Sea oil last October". That was March since when petrol has gone up by more than 20% and crude oil prices have touched US$135, so since October 2007 the Government's tax windfall is clear. (8.3.08)

Clear message for the UK Government
The message has to be drop the 2p increase in excise duty of motor fuels in October 2008 and remove the unreasonable increased car tax (vehicle excise duty) bands on cars first registered from March 2001 to 2006.

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