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No VAT on petrol, urges RAC

7th January 1972, Page 10
7th January 1972
Page 10
Page 10, 7th January 1972 — No VAT on petrol, urges RAC
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Which of the following most accurately describes the problem?

• The Government is to be asked by the RAC to exempt petrol sales from value added tax as part of a new approach to road and taxation policies, and to ease unemployment by stepping up the road programme.

In a New Year message to Britain's 17m drivers seeking their support, the secretary general of the RAC, Mr Nelson Mills Bald win, said: "We want the Government to give the motoring public value for money.

There is a continuing and ever-widening gap between the Government's road expenditure and the income from motoring taxes.

"With an estimated income of just under £2000m from motoring taxation this year and estimated Government road expenditure of about £400m the gap has now reached the colossal figure of £1600m.

"Unless motoring taxation rates are reduced the revenue from this source next year will for the first time exceed £2000m, and unless the Government greatly increases its road expenditure the ever-widening gap will be still larger.

"We are about to have drastic changes in the taxation system, notably the introduction of value-added tax in 1973. Unless petrol sales are exempted from this tax or petrol tax is reduced to compensate for VAT prices will automatically be inflated."