RECORD-breaking pump prices mean the Treasury is raking in nearly £4million extra a day in VAT since the start of the year.
The huge figure will put Chancellor Rishi Sunak under fresh pressure to slash fuel duty at this month’s mini-budget.
Statistics expert Jamie Jenkins says around 133 million litres are bought each day with daily totals of £77million in duty and £35million in VAT.
Around 53 per cent of the cost of a litre of petrol goes straight into Treasury coffers.
But with average fuel prices rocketing by 14p since January, the amount of VAT the Treasury is raking in is also massively up.
Former ONS statistician Mr Jenkins said: “As fuel prices rise the Chancellor takes home more in VAT, getting £3.7million more per day since early January.
“Fuel duty alone brings in around £77million every day and with costs rising for families this is an area he could temporarily cut next week.”
MPs want Mr Sunak to cut at least 5p from the 57.95p fuel duty or a reduction in the 20 per cent rate of VAT.
And Tory Craig Mackinlay said Mr Sunak should “at least give the unexpected tax revenues back to the public facing a raft of cost of living shocks”.
Did you miss our previous article…
https://www.hellofaread.com/politics/boozy-brits-boosted-new-year-economy-as-they-celebrated-easing-of-covid-restrictions/
