July 5, 2008

What Car? has launched a petition calling for the Government to invest a huge tax windfall worth billions on improving Britain's road transport facilities.

Motorists can't fail to notice the increasingly prohibitive price rises in fuel costs, every time they fill up, but relatively few appreciate how much of that cost is made up from the VAT applied to fuel.

What Car? estimates that at June 2007 pump prices motorists handed over £19 million every day in VAT on fuel – the equivalent of more than £7 billion a year.

At June 2008 prices, the take from VAT on fuel is up to almost £25 million a day, a daily rise of £6 million daily, that's £180 million in June from the VAT on fuel alone.

While businesses are able to reclaim VAT on fuel, private motorists are hit hard by the Government which also makes nearly £25 billion a year in fuel duty and billions more on North Sea oil taxation.

As the government is clearly unwilling to address the issues of high fuel prices, What Car? believes this massive VAT windfall should be put back into road transport, and is calling on the Government to ring-fence the cash for the benefit of motorists.

What Car? editor Steve Fowler said: “Every motorist would surely welcome billions of pounds more spending on transport.

"We’re all being hit hard by price squeezes, so some cash for motorists could help to take the edge off them."

What Car? is asking motorists to add their voice to the campaign by:

Signing up for our Downing Street petition at http://petitions.pm.gov.uk/VATbillions/ if you believe that the extra VAT cash raised from increased pump prices should be spent on motorists;

Participating with a quick online survey at www.whatcar.com and letting us know what you think about fuel prices and how they have increased;

Steve Fowler adds: "Readers are telling us that they just can’t afford to fill up their car.

"Many people rely on their cars to go about their daily lives, yet, worryingly, some are having to cut back on essential spending to fund their fuel costs.

"It seems unfair that the Government and fuel companies make so much money. Let’s see some of it reinvested for the good of the country."

The Motorist has been viewed as a cash cow by the government for too long now, it's time that they saw some benefit for their money.

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