M.P.s Call for Fuel Tax Relief
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P.s have wasted no time in expressing their disappointment that the Budget gave no relief in the duty on fuel oil used by road vehicles. I still think that there is some case for abolishing the surcharge and perhaps going even further on the fuel oil used for road transport ". declared Mr. Eric Johnson (Tory, Blackley) during the Commons debate on the Chancellor's proposals.
The cost of fuel used in heavy goods vehicles was very heavy indeed, he said, and was bound to have an effect on the delivered price of manufactured goods. Another important aspect of the tax on fuel was its serious effect on the cost of operating public service vehicles, went on Mr. Johnson. If branch lines were closed there would be an increased demand on bus routes at present unremunerative, and if these were to be operated the people operating them must be given the chance of making a profit or they would not run them.
With the present high rate of fuel tax many rural bus routes were faced with diminishing receipts and in some cases gradual losses, said Mr. Johnson.
Mr. A. E. Cooper (Tory, Ilford South) said he was sorry it had not been possible to make any concessions with regard to fuel oil, though he understood the reasons for it.
He thought it would have been possible to make a reduction in the tax on oil used for transport. The Chancellor had used the argument that he did not wish to interfere with the development of the coal industry, but surely it would have been possible to have a differential tax which would have given public transport the benefit of fuel oil at a lower cost?
Through the British Omnibus Companies public relations committee, bus operators have expressed themselves as shocked that the Chancellor made no reduction in the 275 per cent tax on oil fuel.