Chancellor Regrets High Fuel Tax
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" I REGRET the necessity for the exist ' ence of the present very substantial rate of duty on fuel. I recognize that 2s. 6d. a gallon is a heavy charge," said the Chancellor of the Exchequer in the House of Commons last week. Several M.P.s had pressed, during the Committee Stage of the Finance Bill, for a fuel tax concession for bus operators.
Mr. Frank McLeavy (Soc., Bradford East) wondered why the tax could not be applied to all users of fuel rather than only road transport. The Chancellor replied that this would mean imposing a tax of Is. Id. a gallon and doubling the price of fuels at present taxfree He added that if relief were given to passsenger operators, it could be expected that hauliers would apply for exemption.
To relieve oil-engined buses from fuel tax would cost £28m. a year, and both oil and petrol buses £33m. If a concession were extended. to oil-engined lorries, the Exchequer would lose £37m.