Comments on: Redwood welcomes the exposure of Government’s fuel duty windfall http://www.johnredwoodsdiary.com/2008/05/19/redwood-welcomes-the-exposure-of-government%e2%80%99s-fuel-duty-windfall/ Conservative Party Member of Parliament for Wokingham Sat, 11 Oct 2008 09:14:12 +0000 http://wordpress.org/?v=2.6.2 By: Gerard Young http://www.johnredwoodsdiary.com/2008/05/19/redwood-welcomes-the-exposure-of-government%e2%80%99s-fuel-duty-windfall/#comment-20717 Gerard Young Wed, 21 May 2008 11:52:09 +0000 http://www.johnredwoodsdiary.com/?p=1087#comment-20717 50.53p per litre on the pretax value of the fuel that was 96p in Sept 07 and is now 117p per litre On the 50.53p I pay 17.5% VAT which comes to 59.37p This leaves 57.63p which is also taxed at 17.5% This means the Government gets another 10.08p Or in total 67.63p Bear in mind that someone that was filling a 60 litre tank in Sep did it for £57.60 and now has to pay £70.20, and the fact that they are almost certainly paying with taxed income taxed at 22%. So for the £70.20 it now costs of fill the tank the government has taken £15.44 in income tax before (22%) £40.57 in Vat and Duty £7.72 in National Insurance (11%) a fine total of £63.73 So by my reckoning the revenue on a litre of fuel is roughly 91% of the total price. or 106.5p put of the 117p per lirte I wrote to Michael Ancram about this (my MP) maybe you can do something about it. You can give this back of fuel receipt calculation to Angela Eagle just to let her know that even if she can't tell you how much the government gets from every litre of fuel, most of us can work it out pretty quickly. Taxation at these sorts of levels is not taxation its legalised robbery. Reply: Indeed. Thanks for that. Regards Gerard Young 50.53p per litre on the pretax value of the fuel that was 96p in Sept 07 and is now 117p per litre

On the 50.53p I pay 17.5% VAT which comes to 59.37p

This leaves 57.63p which is also taxed at 17.5%

This means the Government gets another 10.08p

Or in total 67.63p

Bear in mind that someone that was filling a 60 litre tank in Sep did it for £57.60 and now has to pay £70.20, and the fact that they are almost certainly paying with taxed income taxed at 22%.

So for the £70.20 it now costs of fill the tank the government has taken

£15.44 in income tax before (22%)
£40.57 in Vat and Duty
£7.72 in National Insurance (11%)

a fine total of £63.73

So by my reckoning the revenue on a litre of fuel is roughly 91% of the total price. or 106.5p put of the 117p per lirte

I wrote to Michael Ancram about this (my MP) maybe you can do something about it.

You can give this back of fuel receipt calculation to Angela Eagle just to let her know that even if she can’t tell you how much the government gets from every litre of fuel, most of us can work it out pretty quickly. Taxation at these sorts of levels is not taxation its legalised robbery.

Reply: Indeed. Thanks for that.

Regards

Gerard Young

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