Fuel Tax Is Too High, Say 84% Of Motorists

Fuel Tax Is Too High, Say 84% Of Motorists

The Chancellor of the Exchequer, George Osborne, revealed that the government will be increasing the fuel duty by 0.5 per cent when he announced his Budget earlier this week.

However, new research has revealed that 84 per cent of motorists believe the tax on fuel is already too high.

A survey by the RAC indicated that 26 per cent want the 57.95p per litre duty to remain the same for the rest of Parliament, while 18 per cent want it extended for another year.

As much as 36 per cent were keen to see the Chancellor to reduce the tax, when he made his announcement on Wednesday (March 16th).

Fuel spokesman for RAC Simon Williams said: “There is widespread consensus that lower fuel prices have left people with more money to spend elsewhere, which both government and independent analysis shows is good for the economy.”

He did correctly predict, however, that because Mr Osborne did not refer to a freeze in the Autumn Statement, a tax increase was likely, which would “go down like a lead balloon”.

The AA also warned of a possible ‘stealth tax’ in this week’s Budget, as it revealed 72 per cent of its 30,000 members were unaware that increases in the Insurance Premium Tax would also apply to breakdown cover.

While many are aware it will affect car and home insurance, 87 per cent believe increasing the cost for essential policies is not fair.

President of the AA Edmund King said it was “completely unreasonable” for the government to increase taxes for motorists who choose to protect themselves against a breakdown.

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