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[The Sheriff]

Been asking Mr google some questions and playing with the numbers. Figures are rounded so approximate.

Last year 34 billion litres of fuel were sold through the pumps in the UK. 60% of the price of fuel is tax and VAT.
When fuel was at about £1.30 six months ago, the tax take was £1.30x34 billionx60%=£25.32 billion.

Now that fuel is about £1.05 the tax take is £1.05x34 billionx60%=£21.42 billion.

So the treasury has lost £3.9 billion in fuel duty over the last months.


The reason I did this was because George was on the telly last night saying that the drop in fuel prices was partly down to government policies. No, George.......no.

[Field Marshal Dr. Opti]

Been asking Mr google some questions and playing with the numbers. Figures are rounded so approximate.

Last year 34 billion litres of fuel were sold through the pumps in the UK. 60% of the price of fuel is tax and VAT.
When fuel was at about £1.30 six months ago, the tax take was £1.30x34 billionx60%=£25.32 billion.

Now that fuel is about £1.05 the tax take is £1.05x34 billionx60%=£21.42 billion.

So the treasury has lost £3.9 billion in fuel duty over the last months.


The reason I did this was because George was on the telly last night saying that the drop in fuel prices was partly down to government policies. No, George.......no.

I never did trust that bastard.

[Varche]

that is quite a lot of tax take to "find". Like I said on the other thread there is a price to pay for low oil prices.

Green energy subsidies?

Will any company/government be able to afford to underwrite the astronomical cost of building the required nuclear power stations and their guaranteed generating unit costs?

Oh and you need to add in the lost tax on barrels of oil extracted from the North Sea. The loss will be in the region of 10 billion£ or more.

[Entwood]

Figures probably incorrect I'm afraid .. although there HAS been a loss of revenue it is actually a lot less than you quote...

Reason being is simple ... fuel price includes 2 separate taxes ...  the actual fuel tax which is a fixed amount, which at the moment is £0.5795 per ltr on unleaded petrol. This has not changed at all.

https://www.gov.uk/government/publications/rates-and-allowances-excise-duty-hydrocarbon-oils/rates-and-allowances-excise-duty-hydrocarbon-oils

The rest is made up of product cost (the bit that is changing rapidly) and the retailer markup .. then add VAT at 20%

So the actual loss of revenue is ONLY the change in the VAT "take" .. which has dropped from around £0.22 to around £0.18 ... or 4 p/ltr

so 34 Billion litres x 0.04 = 1.36 billion approx, or a third of your estimate ... still a lot of dosh I agree .....

[The Sheriff]

Ah...I see. My calculations were based on a percentage tax take like, say, income tax. Didn't realise that it was a fixed amount.
Back to the drawing board.

[aaronjb]

The reason I did this was because George was on the telly last night saying that the drop in fuel prices was partly down to government policies. No, George.......no.

Well I suppose you could argue that if you argue that the drop in crude price is thanks to the government policy (ours and others) of trying to punish Putin by driving down his primary source of income…

That's politician logic for you..

[Kevin Wood]

The reason I did this was because George was on the telly last night saying that the drop in fuel prices was partly down to government policies. No, George.......no.

Well I suppose you could argue that if you argue that the drop in crude price is thanks to the government policy (ours and others) of trying to punish Putin by driving down his primary source of income…

That's politician logic for you..

The same government policy that'll re-introduce the fuel duty escalator in the next budget, no doubt.

Oh, wait, it's election year.

[aaronjb]

Oh yes, it's amazing how this has all coincided with a general election, too..


Me, cynical? Never.

[Field Marshal Dr. Opti]

Your next question should be......How can good old George recoup the missing Billions?

[Varche]

Two more losers are:


Scotland as Salmond budgeted on oil being 110 a barrel so they are now more"dependent" on the Uk. Actually they had a lucky escape with the No vote.

Oil industry jobs. maybe 10% of Uk jobs to go in order to keep production going. That could be 30,000 plus tax payers on good wages.

http://www.theguardian.com/uk-news/2014/dec/19/oil-price-challenge-north-sea-scottish-nationalists

[Kevin Wood]

Me, cynical? Never.

..and just as millipede announces a blank cheque to prop up the NHS and nothing to fund it (yet more borrowing, I guess?) umpteen hospitals start announcing that they are in "crisis".

[Sir Tigger KC]

Shame the Scots voted 'no' really.    How we'd have laughed! 

[Rods2]

If Osborne doesn't reach his tax targets, just blame Nissan Leaf owners for any tax rises. 

[Kevin Wood]

If Osborne doesn't reach his tax targets, just blame Nissan Leaf owners for any tax rises. 

Petrol will be cheaper than leccy soon. We'll blame them when that happens just to rub it in.

[05omegav6]

If Osborne doesn't reach his tax targets, just blame Nissan Leaf owners for any tax rises. 

Petrol will be cheaper than leccy soon. We'll blame them when that happens just to rub it in.

Big block generator anyone...