VW 1 litre
Posted on 01/02/2011 9:49:48 AM PST by Libloather
Fuel price rises by 0.76p per litre
Sat Jan 1, 2011 3:26PM
On 1 January, the British government announced an increase in the price of petrol, a condition which led to another 0.76p rise in the price of both petrol and diesel. This is while VAT will rise by 2.5 percent on 4 January.
It is also said that another £1,200 is to be added to annual fuel bills due to the rises announced on 1 January, according to the state-run BBC.
The AA suggested that these increases would push the cost of a litre of both diesel and petrol up for around 3.5p.
The average price of unleaded petrol in the UK is increased by 20.61p a litre comparing to the same time last year.
RAC Foundation also said that the fuel tax would rise again in April.
Professor Stephen Glaister, the RAC Foundation's director said, "Given that each penny increase in fuel duty raises about an extra £500 million for the Exchequer, it is easy to see why the chancellor is tempted to hike rates.”
Lorry drivers are also paying about £3,800 more on fuel comparing to the same time last year, according to the Freight Transport Association (FTA).
"Diesel is not an optional extra for industry. It is essential to keep shops stocked and businesses supplied with materials,” the FTA's chief economist Simon Chapman said.
Barry Proctor, the head of a haulage company, condemned the rises, saying, "This is a huge blow to the haulage industry. We've had horrendous weather conditions over the last few weeks, but yet again this industry has managed to deliver Christmas, unlike an awful lot of other industries that have failed their customers miserably. And instead of a pat on the back from George Osborne, it's another body blow."
Those without talent always choose socialism/communism.
And despite the myriad failures of all variations on this sorry excuse for an economic system, the vast majority of those in college (who do not have the intellectual horsepower nor moral ability to handle it) will falsely believe that they can make it work and once again attempt to see if they can make it succeed.
Stupidity is trying the same thing over and over and expecting different results. (bad misquote...but the idea’s there).
This is exactly what happens with a VAT Tax. It’s controlled by politicians and people never see it coming when they raise the tax.
This increase by my quick calculations in converting the litre to gallons and the pounds to dollars would equal an increase of $4.51 per gallon. Ain’t socialism great!!
People will drive less and stores will have fewer things delivered. The tax collection will not increase nearly as much as they think.
Brits pay about the equivalent of about $7.32 per gallon of regular unleaded gasoline (if calculations are correct).
perhaps cooking oil could be
substituted for diesel
How do you figure that? 0.76p is about 1 US cent ($0.01). 20.6p is about 30 US cents ($0.30). Not that any of this is good, but your figure looks way off.
VW 1 litre
“”This is while VAT will rise by 2.5 percent on 4 January””
______
I believe what they meant to write is that VAT will increase from 17.5% to 20.0% on Jan 4. If so that is a 12% increase.
“”Britain’s austerity drive in 2011 kicks off in earnest on Tuesday, when its rate of VAT, or sales tax on goods and services, jumps to 20 percent from 17.5 percent.””
The Brits are facing a 14.3% increase in their sales tax to pay for their bloated bureacracy.
Hey, If the hat fits...
Additional filtration and treatments must be performed before that’s possible; vehicles must also have a conversion kit installed before they can use it on top of all that.
Maybe, but if taxes HAVE to go up (and with the current labour inspired economic crisis they certainly will have to, at least in the short term) I’d rather have a 2.5% increase in VAT than another 2-3p on income tax. At least this way the money stays in my pocket and I get to choose what I spend it on, or not as the case may be. Besides, since everyone pays VAT at least everyone is contributing. Income tax hikes only effect people who actually earn.
What percent did the VAT tax start at in the UK? What percent is it today? The problem of a VAT tax is the people will never know when the government raises the tax. The other problem is that the tax is put on at every stage of manufacturing and every time a product is sold. It’s my understanding that some countries have a VAT tax of over 25%. I don’t think this is what we want or need right now.
If this happens, people will stop purchasing and companies will stop manufacturing in the quantities that they do. This would mean less jobs.
I’d rather see a flat/fair tax that everyone would pay.
I can assure you that everyone is VERY aware of changes in the VAT rates. For example the shops here have been doing great business on the lines of "avoid the VAT rise on Jan 4th by buying now".
Yes the tax is put on at every stage of manufacturing, but the point is its put on every example of a particular commodity, so there is no competitive advantage/disadvantage. In fact it tends to highlight differences in production.
I don't understand your contention that VAT causes people to stop purchasing and companies will stop manufacturing in the quantities, which therefore means less jobs. I dont mean I dont understand the process, but how is that different from the effects of an income tax? With that, the prices remain the same but I've just got less money to buy with - so doesnt that have exactly the same effect?
How is VAT not a tax that everyone pays? Everytime you buy something, you pay the tax. So everyone who buys something, pays the tax. Therefore everyone pays.
Don't get me wrong, I don't like paying taxes any more than anyone else, and I understand that anytime the government takes money out of the economy they risk damaging it by the process you outline. However, my contention remains. IF there has to be a tax hike, I'd rather it was a VAT increase than an income tax rise.
My concern over the VAT is that it becomes, or can become, hidden from the general public. An income tax is seen by everyone. The general public doesn’t really understand the VAT and governments know this very well. As an example, when you purchase an airconditioner for your home, a Vat tax is hidden in the price. Therefore the public doesn’t know exactly how much of the price is a VAT tax. That concerns me.
By law retailers have to include VAT on receipts, and on their advertising.
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