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An MP wants the tax take to be displayed at pumps on every petrol station fuel bill
Tory Peter Aldous wants the tax take to be displayed at the pumps and on every petrol station fuel bill.
This will be the key provision in his Vehicle Fuel Bill which he is launching under a parliamentary system that lets MPs propose their own laws.
He hopes the move will pressurise the Government into freezing fuel taxes.The MP for Waveney in Suffolk estimates that 65p in every pound spent at the pumps goes to the Treasury as fuel duty or VAT.
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The total fuel pump tax take from motorists is about £35billion a year including £27billion in fuel duty alone.
Mr Aldous said of his plan: “I think that this is another focus to reinforce the message that the motorist should not continue to be used as a sort of Aunt Sally for raising taxation.”
He believes that if people knew where their money was going it would lead to prices at the pump changing more quickly when the price of crude oil drops.
The total fuel pump tax take from motorists is about £35billion a year
There is a concern that it’s a market that is not functioning properly
Peter Aldous, Tory MP
He said: “There is a concern that it’s a market that is not functioning properly and fair to the consumer and that’s again something we need to highlight.”
He added: “I think this also has the support of retailers because I think there might be a perception that retailers are making a significant amount of money on this but they are not and I think they welcome it for that reason.”
Mr Aldous said “clear precedents” have already been set in terms of tax transparency, with people told where their council tax goes.
Tory Peter Aldous hopes the move will pressurise the Government into freezing fuel taxes
He said: “If government is not honest and transparent they will incur the wrath of the people and the population, and I think we do have a duty to be completely up front and honest and have a full debate about this.
“Because ultimately I’m answerable to my constituents and if they and other colleagues’ constituents are incensed by this, we have a duty to do something about it.”
His Bill has the backing of the FairFuelUk campaign and the RAC.
RAC fuel spokesman Simon Williams said: “We have been calling for some time for fuel receipts to show how much of each fill-up goes to the Treasury so we wholeheartedly support the bill being put forward today by Peter Aldous MP.
“Motorists know how much Vehicle Excise Duty they have to pay to keep their vehicle on the road so it seems ridiculous they have no idea how much duty they are paying to the Treasury when they fill their vehicles with fuel.
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"This Bill really shouldn’t be controversial, it is just a long overdue form of transparency that everyone who drives a vehicle ought to be entitled to see.
“We would hope that MPs from all sides of the House will show their support by allowing this Bill to progress and that the Government takes notice of just how popular this measure would be with motorists.”
Mr Aldous does not expect his draft Bill to become law because of a lack of parliamentary time but he hopes it will increase pressure for reform by raising awareness of the issue.
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