The British Chambers of Commerce have calculated the gummint has raked in an extra £505 million in VAT and North Sea Oil tax* in the last six weeks as a result of oil price rises.
Annualised, that's £4.4 billlion - or enough the increase the tax-free personal allowance by a further £1,000.
This is a very good illustration of "Why politicians love VAT" items 8 & 10.
David Frost's analogy is rather unfortunate though “Seeing the fuel gauge barely move when you put in £20 is frustrating and only going to get worse." Er, David, you don't actually put a £20 note in the tank, you give that to the attendant when you've finished putting petrol in.
* This is in fact a 20% surcharge on the standard rate of corporation tax that North Sea oil companies pay, making their effective rate 48%. Altho' I have said previously that flat-rate corporation- or income-tax is the second least bad tax, firstly, 48% is hardly 'flat' and in situations like this, it acts pretty much like a turnover tax, the worst tax of all.
Gadget culture
10 hours ago
