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post #24 of (permalink) Old 9th November 2007
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Originally Posted by ottoman View Post
Fuel duty is a fixed price per litre Horatio but when you take into count VAT it causes variances in the pricing
It rather depends on how you look at it. Yes, you are paying a variable amount of tax in that you're paying VAT on the total of the fuel cost plus duty.

But as the duty value is preset, so is the VAT on that segment of the cost. Only the VAT on the (duty free) fuel price varies, in line with the cost of the fuel itself.

Of course in a fair world, they shouldn't be able to charge VAT on the duty in the first place. Then again, if they abolshed that, they'd just put up the duty by 17.5% (or probably more.)
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