lit-man Howe: fuel and duty up
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1ARP increases in fuel tax and hide excise duty are the main Ilmarks for road transport in is week's Budget.
In his 88-minute speech on iesday afternoon, Chancellor the Exchequer Sir Geoffrey we announced an immediate Ip increase (including VAT) on e duty on a gallon of petrol or rrv.
But, while some in the indus( —notably the Freight Trans)rt Association — wanted dery be taxed less heavily, he has aintained the equal basis of x introduced in the last Bud
Vehicle excise duty on all asses of vehicle goes up by 15 cent, but, as expected, Sir eoffrey has delayed impleenting the Armitage recomendations for an extra £800 tax 32.5-tonners until after the -esent Transport Bill becomes w.
He announced that, because 3rv is being raised at the same
rate as petrol, there will be no differential increase in the duty paid for heavy lorries.
According to the Chancellor, the new tax on dery will raise another £270m in 1981/82, and the petrol increase £910m. The increase in vehicle excise duty will yield £225m for all classes of vehicles.
While employers will be disappointed by the absence of any reduction in National Insurance surcharge or any general reduction in Corporation Tax, the Chancellor does propose a reform of stock relief to help businesses which have been hit by a clawback of relief when they have reduced their stocks.
He also proposed an increase in the initial allowance on the construction of industrial premises from 50 to 75 per cent,
Sir Geoffrey Howe: Hitting the haulier
as part of a policy of encouraging investment for the future. There also are improvements to Capital Transfer Tax allowances to encourage entrepreneurs to hand over their business to a younger generation.
And extending the help for new small firms which is enshrined in the 11 enterprise zones already designated, he has announced a business start-up scheme whereby relief can be claimed.
The smallest self-employed operators may benefit from an increase in the threshold for VAT. IF turnover does not exceed £1 5,0 0 0 (instead of £13,500), VAT is not chargeable. The limit to which the lower rate of Corporation Tax is payable goes up,from £70,000 to £80,000.
• What it means to you — p5