Should Taxes Be Shown on Petrol Receipts?

When it comes to consumer protection, transparency is key. Why then are British drivers left in the dark about what fuel duty and VAT taxes are being slapped onto their purchases? Now, MPs are demanding that the government comes clean, and lists all fuel taxes on petrol receipts. The calls are backed by both the RAC and FairFuel UK, with campaigners maintaining that motorists should be able to see exactly what they’re paying for.

“We have been calling for some time for fuel receipts to show how much of each fill-up goes to the Treasury so we wholeheartedly support the bill,” stormed RAC’s Simon Williams.

The campaign for clarity

Currently, 65% of current petrol prices are made up of government fuel duty and VAT taxes. Over the course of a year, this amounts to a huge £35 billion that’s directed straight into the pocket of the Chancellor. According to the RAC, this is a fact that’s little known by British motorists. Instead, they simply blame petrol stations for higher fuel prices.

In a bid to offer motorists clarity, Tory backbencher Peter Aldous is pioneering a campaign that will show motorists exactly how much tax they’re paying. He maintains that it’s time to be “open and honest” with British motorists, and force greedy ministers to stop taking advantage of the ambiguous tax system.

 “Motorists know how much Vehicle Excise Duty they have to pay to keep their vehicle on the road so it seems ridiculous they have no idea how much duty they are paying to the Treasury when they fill their vehicles with fuel.”

FairFuel UK’s co-founder Howard Cox is another critic, accusing the government of slapping a huge 75% tax on drivers when pump prices fell to around £1 per litre in 2016. As a result, he’s urging Theresa May to support the bill, and honour her pledge to help working families.

Chancellor defends concealed fuel taxes

Though despite pressure, Treasury ministers are maintaining that from a legal perspective, it’s “impractical” to list taxes on customer receipts.

“Purchase receipts are a matter for buyers and sellers but information on fuel duty is readily available online. Requiring sellers to include this would mean legislation and regulation – and could impose red-tape on businesses,” comments a Treasury spokesperson.

When it comes to cash, clarity is a constant battle. For more insight into the financial issues that define the oil and gas industry, ‘Who is Manning the Cash Register’ reveals offbeat insight into the current landscape.