Fuels: Excise Duties and VAT

(asked on 12th July 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of (a) lowering the rate of VAT on motor fuel for low paid workers and (b) abolishing fuel duty.


Answered by
Alan Mak Portrait
Alan Mak
Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
This question was answered on 15th July 2022

The temporary 5p cut to duty on petrol and diesel represents a £2.4 billion tax cut in 2022-23, to help consumers with high fuel prices.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. It would cost over £6 billion to cut VAT on road fuel from 20% to 5%.

The Government keeps all taxes under review.

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