Remove VAT from the fuel-duty element of petrol and diesel prices. We believe a tax should not itself be taxed. Require announcements of fuel-duty changes to clearly state the full VAT-inclusive impact, rather than just the change in duty.
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VAT is charged on fuel duty: a tax on a tax. At current rates, removing this would cut the tax on petrol and diesel by 10.59p per litre, allowing the same reduction at the pump if passed on in full. Higher pump prices also mean more VAT per litre. We want relief for households and businesses, not the abolition of all fuel taxes. We believe the Government should exclude fuel duty from VAT and ensure the saving reaches consumers.