Q Earlier this year I read an article about a pending
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is 7d a gallon rebate on diesel fuel to be granted by the Government to passenger transport undertakings. What is the present position?
ASection 92 of the Finance Act 1965. as amended by the Bus Fuel Grants Act 1966. and section one of the Finance Act 1967, originally provided for a total grant of 10d a gallon on dery in respect of stage-carriage services. In clause 33. part III of the Transport Bill, published in December 1967. it was subsequently proposed to increase the rebate to 1s 7d as from January 1 next, which is the rebate to which you refer. However, there have since been some important developments. The 1968 Budget increased the rate of fuel tax by 4d, and to offset this increase, the rate of grant was likewise increased by 4d to make a total of 1s 2d. The Government still proposes to give the 9d increase mentioned in the Transport Bill and providing there are no further tax changes and also that clause 33 is retained in the Bill in its passage through Parliament. the rebate will be 1s 11d a gallon as from January 1. The Bill is so couched that the Minister of Transport with Treasury approval has the power to change the rate of rebate so that the rate of residual taxation payable by the operator is no more nor less than 2s a gallon.
A brief summary of official policy on the subject is contained in section VII of the Government White Paper Public Transport and Traffic published by HMSO at 3s 9d.