When you drive a car that does 14 miles to the gallon, you tend to notice that fuel is a little bit pricey. Now many people would say that just serves me right for driving such a big, thirsty, impractical car and not using public transport more... But it's not just me that's getting ripped off - it's everyone. A lot of people in this country simply do not have the choice of using a public alternative. The governments argument that by increasing fuel taxation, they will somehow gently dissuade people out of their cars and onto some clean, efficient, reliable communal alternative just simply doesn't wash. If there was a viable alternative, maybe people would not need this 'stick' method to force them out of their automobiles. The facts, reproduced courtesty of the 'Boycott the Pumps' website - who advocate a montly fuel boycott, beginning August 1st to make the government take notice of motorist's anger at fuel prices. It has been known to work in the 'States...
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If you live in the UK, you are taxed at 340% on your petrol.
Petrol is now approaching £0.90 per litre. That's £4.10 a gallon.
For every £50 fill-up, you're just giving the government more than £38 out of your
own pocket.
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For the average family, a 1p per litre increase in the cost of fuel means
an extra £100 a year out of their pocket.
Work it out for yourself. If you and your spouse commute a 50 mile round-trip each day (which isn't unrealistic in today's world) then in the weeks leading up to mid June, you took a combined salary cut of around £700 a year.
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Fuel duty has little to do with the environment.
Leaded petrol was supposedly taxed highly for environmental reasons. Why then, when it was replaced with LRP did the price not come down? Diesel fuel is cheaper, yet pollutes more. LPG is the cleanest fuel there is but you don't see the government promoting that do you?
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£38billion is sucked out of motorist's pockets each year in tax.
You buy the planet's most expensive petrol, but do you see that money going back into the roads? No you do not. A recent study pointed out that most of Britain's roads are up to 15 years beyond their structural refurbishment date.
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Freight companies are suffering - so is our trade with the EU.
When a haulage company has to fill it's tanks with diesel taxed at such a ridiculous rate, it's running costs become so expensive that companies take their business to haulage firms based on the continent. That in turn means a loss of income for our country.
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Public transport is not an option.
Buses and coaches become more expensive again because of the underlying cost of running them. The privatised rail and bus companies continue to slash services and close branch routes because running them is not "cost effective." i.e. the shareholders aren't getting their dividends. And the government are doing nothing about it. Rail companies have been underperforming and missing targets as stipulated by their contracts ever since privatisation. Yet they're all still in business.
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The Government's revenue from taxation levied upon the motorist now totals £36 billion annually and is still rising. This figure has doubled in just 10 years. Revenue from Fuel duty alone has gone from £8.7 billion in 1989/90 to an expected £23.3 billion in 2000/01, according to Treasury estimates. This means that the motorist is now coughing up more than ten percent of the Government's income, and getting very little in return.
figures courtesy of the British Roads Federation
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The Fact is that motorists in Britain are currently being hit by a 'double whammy' of having to endure escalating taxes whilst perversely having to suffer a much poorer service - as indictated in the graph below, showing the pronounced decline in the percentage of road user taxation actually spent on roads over the past 8 years.
figures courtesy of the British Roads Federation In 1992/3 the government netted 19.6 billion pounds from the motorist, £5.8 billion being set aside for expenditure on roads. In 1998/99, taxation had nearly doubled to 34.9 billion pounds, yet expenditure on roads had shrunk to just £5 billion. Clearly, as any economist will tell you, there are various negative side effects associated with the automobile usage. The best way to represent these 'negative externalities' is for the government to tax cars sufficiently so that the true cost of their use is reflected in the price. But... cars are becoming much cleaner, more efficient and much, much less harmful to the environment than ever before. Why then is taxation going up? Why can't the government be a little more transparant about how much cars should be taxed and provide sound economic reasoning as to why - instead of merely bleeding the British motorist dry in the name of enviromentalism?
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If you're not bored by now, here are my musings on the Budget! And also a very interesting piece about modern 'anti car ideology' that was posted on the boycott the pumps message group. Click here, not sure who its by...
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