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Motion · S6M-03615 · 14 Mar 2022

Calls for UK Government to Urgently Cut VAT on Petrol and Diesel

Lodged by Kenneth Gibson (No Party Affiliation) Standard Motion 18 supporters

The motion

That the Parliament observes with concern the ongoing increase in fuel prices across Scotland and the United Kingdom, with the cost of petrol and diesel in the UK reportedly hitting an all-time high; notes that the UK Government announced at the recent Autumn Budget that fuel duty rates will remain frozen at 57.95 pence per litre; highlights that drivers are charged a further 20% in Value Added Tax (VAT) on petrol and diesel, including fuel duty, resulting in, it considers, drivers effectively being double-taxed, with increased transportation costs being passed on to consumers and inflation further accelerated; is mindful that this is taking place against the backdrop of the COVID-19 recovery and a further significant increase in energy costs expected as of 1 April 2022; considers that rises in fuel price quickly feed into the overall cost of living as hauliers pass on their extra outlays to customers; understands that the UK Treasury is in receipt of billions of pounds in additional revenue as VAT on fuel at forecourts rockets and other prices rise, accelerating inflation, and recognises the calls on the UK Government from petrol retailers to halve VAT on fuel to ease pressure on consumers, and to alleviate what it sees as the very real difficulties that households and businesses currently face.  

Supporters (18)

Source: the Scottish Parliament motions and amendments record.