Low cost of axing that tax
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VEHICLE EXCISE tax coul be done away with at a cost less than an extra 16p a galloi This figure was released by th Treasury last week, and col firms CM's estimate on Febrt ary 16 this year.
The Government collecte £1,090m a year in vehicle e: cise duty while road usei consumed 6,600m gallons fuel. By adding 16p on to tI pump price of a gallon, the lo vehicle excise duty would recouped.
This does not take mill account the estimated £50 tax evasion or the unpaid-fl road use by foreigners.
Abolishing the excise tk' would also contribute towari the new Government's pub] expenditure cuts.
An estimated 10,000 peop are employed in vehicle exci duty collection, so though ti saving would probab amount to no more tiu £100,000, it would show th the Government meant bu; ness.
With all these other dedu tions, it is estimated that t price hoist would need be I more than an additional 12p