Fuel duty up in Pre Budget Report
Added on Thursday, December 10th, 2009 by Carole Nash Editor | No Comments
Fuel duty up in Pre Budget Report
Chancellor Alastair Darling delivered announced a widely expected increase in fuel duty in his pre-budget report yesterday, with 1p above inflation planned every year until 2013.
In a pre-budget report with little surprises, the Chancellor announced that an increase in fuel duty of 1p above inflation would come into force on April 1 next year, with similar increases coming into force in 2011, 2012 and 2013.
The increase will be the fourth rise in fuel duty since December 2008 and with VAT also set to return to 17.5% on January 1, motorists will feel their wallets becoming even lighter after a trip to the pumps.
When VAT was decreased 12 months ago, the Chancellor increased duty on fuel in order to make up the shortfall. This increase will still remain in place however when VAT returns to 17.5%.
The increase in duty has unsurprisingly been criticised by motoring groups, with the RHA claiming that the April rise will equate to an increase of “16% in as many months”.
The Chancellor also confirmed that the 20p per litre duty differential for biofuels would cease from April 1, 2010, as the tax discount could not distinguish between sustainable biofuels and those that increase greenhouse gas emissions or raise wider sustainability concerns.
There was little else of interest to motorcyclists in the report, with the Chancellor instead announcing changes to the company car taxation scheme as well as tax concessions for individuals and businesses that chose to operate electric vehicles.
Loading ...
No Comments