Why No Cut in Oil Fuel Tax
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THE reason why the Government will not consider reducing the tax on oil fuel was given by the PaymasterGeneral. Lord Selkirk in the House of Lords last week. Lord Teynham asked why, road transport users of oil fuel had to pay 2s. 6d. per gallon tax whilst the railways paid none. Lord Selkirk replied that although the railways were using more oil-engined locomotives, the Government did not consider that the extent to which this was being done would be likely to cause damage to road transport interests such as might necessitate reconsideration of the existing fiscal position. The present circumstances wi th regard to tax on oil fuel had existed since 1935. At that time, he said, oil engines were beginning to be used increasingly on the roads, and the result was that serious inroads were being made on the revenue drawn from petrol It was accordingly found necessary to tax oil fuel at the same rate as petrol, and this position had been maintained up to the present time.