Fuels: Excise Duties and VAT

(asked on 18th July 2022) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government, further to the RAC Fuel Watch data which show that the average UK petrol and diesel prices was around 191 pence per litre of petrol and 199 pence per litre of diesel as of June, what steps they are taking to reduce (1) fuel duty, and (2) VAT on fuel, to assist families and businesses with the increased cost of living.


Answered by
Baroness Penn Portrait
Baroness Penn
Minister on Leave (Parliamentary Under Secretary of State)
This question was answered on 21st 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% 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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