Derv Fuel Oil

HC Deb 09 February 1961 vol 634 c598

8. Mr. Frank Allaun

asked the Chancellor of the Exchequer what representations he has received for a reduction in the rate of tax on Derv fuel oil.

The Economic Secretary to the Treasury (Mr. Anthony Barber)

My right hon. and learned Friend has received such representations from the Joint Fuel Tax Committee for the Passenger Road Transport Industry as well as from some other sources.

Mr. Allaun

Is the Minister aware that it is this tax of 2s. 6d. a gallon, or 200 per cent. of the basic cost, which has been responsible for the steady contraction of bus services and the increase in bus fares? Is it not a shocking anomaly that, while oil for other purposes is entirely tax-free, oil for bus services is burdened with this heavy tax?

Mr. Barber

I am afraid that I cannot accept what the hon. Member says, but I am sure he will be pleased to know that tomorrow, on my right hon. and learned Friend's behalf, I am receiving a deputation from the Joint Fuel Tax Committee.