Fuel tax penalises the poor
RAC Foundation calls for freeze on fuel duty
Rural and car dependent motorists should not be penalised with higher fuel taxes at the budget.
Inflated world oil prices are causing hardship to many impoverished families around the UK. Low-income motorists already spend 24 per cent of their household outgoings on motoring. Now, in advance of next week’s Budget, the RAC Foundation has called on the Chancellor to freeze fuel tax to avoid further financial distress.
Edmund King, executive director of the RAC Foundation said, "Freezing the level of fuel duty would help the Government to regain the confidence of motorists, but will still leave drivers vulnerable to world petrol price rises. Any rise in duty would create further hardship for essential car users.
"Fuel duty is a regressive tax which hits those hardest who can least afford it - the Chancellor should be aware that motorists may vote with their wheels in the forthcoming election if he chooses to penalise them."
"UK motorists already contribute more than £42 billion in motoring taxes of which only £6 billion is invested on our roads. The Chancellor is already benefiting from increased VAT receipts due to the higher cost of fuel."
The RAC Foundation has also condemned moves to downgrade sections of the trunk road network in England and Wales and urged the Government to reverse the process, which will de-trunk or remove the responsibility for thousands of miles of current trunk roads from the Highways Agency to local authorities. This is already well underway and by 31 March 2006 the strategic network will have been reduced to around 4,165 miles from around 6,580 in 2000.
"The Foundation has serious concerns about a series of policies, which are undermining the importance of the English strategic road network, the motorways and trunk roads managed by the Highways Agency.
A consultation from the Treasury is looking to downgrade another 50 per cent of roads, such as the M5 west of Bristol, by suggesting they are not roads of strategic national importance." added King.
The RAC Foundation is also calling on the Chancellor to address:
Road Investment – Roads are by far the most important mode of transport as 92 per cent of passengers and 81 per cent of goods moved travel by road and will continue to be so in the next 30 years. Firm plans, timetables and targeted expenditure need to be put in place to facilitate much needed improvements to the road infrastructure over the next couple of decades. Motorists are becoming increasingly frustrated by the growing congestion on our roads, and the economy is suffering as a result, costing the country at least £15 billion a year. The RAC Foundation has identified a list of urgently needed improvements to the strategic road network, which at a cost of around £2bn a year over 10 years could all be paid for out of one year’s motoring taxation.
VED - Bandings should be changed from the existing gradings of AAA to F to a simplified A, B, C, D, E or F to reflect the banding system on new fuel efficiency labels.
Motoring taxation - More advance notice should be given on proposed changes so that individuals or fleets buying cars know the longer-term implications.
Insurance premium tax - No increase should be imposed due to high level of uninsured drivers who are already adding £30-£60 a year to the premiums of law abiding drivers.
"The Chancellor needs to be shrewd as well as prudent this Budget. He should be aware of the voting power of 32 million motorists around the country", concluded King.
Along with the Rich ! True.
And those who choose Older less fuel efficient cars ! True.
And those who rely on their cars to get to work in order to pay taxes and contribute to society! True.
Lets face it it's the modern equivalent of window tax.
Lets tax the rich in their big posh cars.
What do you mean the poor are having to brick up their windows ?
On the other hand if petrol was as cheap as in the USA we'd all have V8's right ?
Personally I'm not poor, but £300 quid a month on fuel when I know £250 of it is tax is pissing me off. As is the idea to charge people for keeping unused cars. If there was a credible alternative to the current 3 shower parties I'd be forced to actually VOTE.
IMHO tax is TOO complex and too much is lost collecting and redistrubuting it.
nickytwohats said:
Let them eat cake and drive hybrid vehicles - or diesels - I say
I have a problem getting the eggs and sugar into the tank, but as soon as someone invents the Cake/pie hybrid car I'm getting one. As long as it won't cost me more than my current (no pun intended) car. (£40)
So...why not use something like this:
Average driver 12000 miles per year
(no idea if that's to little or too much)
Car tax currently £165
Average MPG, say 25,
.... therefore 480 gallons per year which divided by the current car tax rates is 34p per gallon.
In this way Mr average is no worse off, Mr Sunday driver and Mr fuel efficient car is better off, and all the [censored]ards who normally cheat HAVE to pay...therefore more money for the government...
...If only we knew they'd spend it on repairing all the crappy roads
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