HC Deb 24 November 1978 vol 958 cc790-1W
Mr. Maxwell-Hyslop

asked the Chancellor of the Exchequer what increase in motor vehicle fuel duty and value-added tax together is estimated to yield net of collection cost the same as every £1 of the existing £50 per annum vehicle excise duty.

Mr. Robert Sheldon

My right hon. Friend the Secretary of State for Transport told the House on 21st November that the Government propose to phase out the vehicle excise duty on all petrol-driven vehicles—including those which pay duty at rates higher or lower than £50 per annum—and replace it by an increase in petrol taxation. I estimate that in 1978–79 this would require an increase of about 19p per gallon in petrol taxation—duty and VAT together. The additional cost of collecting the increased revenue from petrol duty and VAT would be minimal.

Mr. Goodlad

asked the Chancellor of the Exchequer what will be the effect on the price of petrol of the decision to abolish vehicle excise duty.

Mr. Robert Sheldon

I refer the hon. Member to the answer that was given to my hon. Friend the Member for Preston, North (Mr. Atkins) on 23rd November.—[Vol. 958, c. 1461–62.]