HC Deb 22 January 1980 vol 977 c193W
Mr. McQuarrie

asked the Chancellor of the Exchequer why value added tax is added to petrol prices at the pumps when a substantial tax has already been imposed on this fuel at source.

Mr. Peter Rees

Under the provisions of the Finance Act 1972—asamended—value added tax is chargeable on the total VAT-exclusive price of petrol. This reflects the general rule—both in the United Kingdom and in the rest of the European Community—that the value for VAT purposes includes any other taxes or duty which may be payable—for example, excise duty or import duty. At a time when it is vital to conserve energy, there could be no justification for relieving petrol from the operation of the normal VAT rules.

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