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Taxation (Motorists)

Volume 929: debated on Tuesday 29 March 1977

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asked the Secretary of State for Transport how much of each of the following taxes the average private car owner pays annually, assuming an average of £10,000 miles per year: (a) fuel duty, (b) car tax and (c) VAT.

I have been asked to reply.A private motorist driving 10,000 miles a year would pay an average £100 a year duty on petrol and £30 a year VAT on petrol. He would pay car tax only if he bought a new car. Car tax is charged at the rate of 10 per cent. of the wholesale price of the car, and, of course, VAT at the standard rate of 8 per cent. of the VAT-exclusive retail price is also charged.