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Trade News Archive May 08 April 08 March 08 February 08 January 08
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19th May 2008
Fuel duty rises 'should be postponed to help businesses and consumers'
The government has been urged to scrap plans to increase the proposed 2p fuel duty rise in October.
New figures from the British Chambers of Commerce (BCC) have shown that the rising price of oil means that the government has already generated a windfall tax of £505 million since the beginning of the tax year on April 1st.
According to the BCC, this is as much as the proposed fuel duty rise would generate after it is introduced in October.
As a result, the organisation has called on minister to scrap the increase to help both businesses and consumers.
David Frost, director general of the BCC, explained: "The rising cost of petrol is hitting everybody hard, not just businesses. Seeing the fuel gauge barely move when you put in £20 is frustrating and only going to get worse.
"With the Treasury estimates on what it would bring in on fuel tax woefully out of line with reality, this £505 million windfall in less than two months must surely rule out the 2p rise scheduled for October. It is simply unjustifiable."
In April, the Freight Transport Association reported that the rising cost of diesel now represents a major cause of concern for every UK business supplying goods and services.
(c) 2008 Adfero Ltd.
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