§ Mr. Michael Lathamasked the Chancellor of the Exchequer what was the total revenue from motor vehicle licence taxation in the last financial year; and by how much it would be necessary to increase taxation per gallon on petrol to 355W compensate for the abolition of the licence duty, assuming no alteration in the level of petroleum consumption by road users as a result.
§ Mr. Denzil DaviesThe yield of vehicle excise duty for 1975–76 is estimated to be about £770 million. In order to obtain the same revenue it would be necessary to increase the duty on road fuel by 14½p per gallon. This would result in an increase in the price of petrol, including VAT, of about 18p per gallon.