Petrol

HC Deb 12 April 1976 vol 909 cc434-5W

Mr. Kimball

asked the Chancellor of the Exchequer what representations he has received from the farming community and distributive trades about his substitution of excise duty for VAT on petrol, in view of the fact that this represents a net 14 per cent, increase in the price of petrol.

Mr. Robert Sheldon

None.

Mr. Kimball

asked the Chancellor of the Exchequer on what basis he arrived at his calculation that petrol would only rise by 1p per gallon or 1½ per cent., in view of the fact that replacement of 25 per cent. VAT which is reclaimable by 12½ per cent. VAT plus 7½ per cent, duty represents an increase of 14 per cent, in the cost of petrol; and if he will make a statement.

Mr. Robert Sheldon

As my right hon. Friend said in his Budget Statement, the proposed changes in taxation of petrol would mean a net increase of about lp a gallon on petrol for the private motorist.