In light of the current unprecedented increases in fuel costs, the government have also seen a large increase in tax revenue far in excess of the amounts forecast. Although this increase is useful to the exchequer it also puts additional and unsustainable cost pressures on businesses and the public.
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There is a perception that the government therefore have a vested interest in allowing prices to remain high.
I propose that a cap should be placed on the total combined fuel tax/VAT take so that total taxation cannot exceed a fixed amount regardless of underlying prices.
This would allow the government to reduce cost pressures whilst maintaining an easily forecast tax revenue. It would also give confidence to the public that there was no conflict of interest in government regarding fuel costs