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Excise Duties: Fuels

Volume 467: debated on Thursday 22 November 2007

To ask the Chancellor of the Exchequer (1) what the total tax paid in the UK is on a litre of petrol selling for £1.0299; (162183)

(2) how much was raised in taxes on motoring in each year since 1997-98;

(3) what his most recent forecast is for receipts from petrol and diesel taxation in 2007-08; and what change there has been since budget forecasts.

The current fuel duty payable on a litre of petrol is 50.35p and is the total amount of tax paid by businesses that can reclaim VAT. For households and businesses that cannot reclaim VAT, it is charged as 17.5 per cent. on the sum of the pre-tax price of petrol and fuel duty.

Forecasts of receipts from fuel duties are published in “The Public Finances” chapter of the Budget and pre-Budget report (PBR). These are available on-line:

Budget 2007:

www.hm-treasury.gov.uk/media/C/8/bud07_chapterc_288.pdf

PBR 2007:

www.hm-treasury.gov.uk/media/F/9/pbr_csr07_ annexb_305.pdf

Table B8 from the latter shows changes since the Budget.

Taxes on motoring are vehicle excise duty and hydrocarbon oils duty. The revenue raised from these taxes can be found in the following sources:

Vehicle excise duty (and hydrocarbon oils duty)—the Office for National Statistics publishes revenues since 1993 (including hydrocarbon oils) at:

www.statistics.gov.uk/statbase/ssdataset.asp?vlnk=5688

Hydrocarbon oils—table 3 of the Hydrocarbon Oils Bulletin published by HM Revenue and Customs contains revenues since 1997-98, available at:

www.uktradeinfo.com/index.cfm?task=bulloil.

HM Revenue and Customs do not collect data on other taxes (such as VAT) levied on individual goods and services (such as petrol and diesel).

Company car tax (including fuel benefit charge) is the income tax and national Insurance liability for employee and director benefits-in-kind received as cars and fuel for private use and is published from 1999-2000 by HMRC. This can be found in table 4.5 at:

www.hmrc.gov.uk/stats/taxable_benefits/menu.htm.