I never thought I would say this but….

It seems obvious that if a government wishes to encourage an activity it makes that rate of tax low and if it wishes to discourage activity it makes the tax rate high. As an example I offer the low rate of tax on reading material and children clothing with the higher rate of tax on tobacco products.
Since all governments feel the need to get more money from taxpayers perhaps the time is come to increase the tax on petrol or gas as it’s known in America. The increasing tax would be a little noticed since the price of the fuel seems now to be falling rapidly. This could be a short-term measure and would both increase tax revenues and even out the wide price fluctuations we seem to be currently experiencing. When the price of crude oil goes up again the tax could be reduced but don’t hold your breath on that one. Some of us may remember the promise made when the bridge over the Thames at Thurrock was built. Politicians gave the assurance that as soon as the cost of the construction was recovered toll would be removed. Feel free to check the current cost of the Thurrock bridge crossing today, some 50 years later but be assured that it is now £2.50 per crossing.
However not only would an increase in petrol tax be good for governments’ finances but it would continue to stimulate the move away from a petrol based economy which for the good of the environment must be a principal concern of all governments.
That this hasn’t happened already frankly amazes me but perhaps politicians are so engrossed in political infighting have missed what’s been going on in the price of oil.


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