AT LAST—A N EW THOUGHT
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An interesting suggestion about how to reduce fuel costs for business users without compromising the government's avowed policy of taxing private motorists on to public transport was made at a recent meeting of the Hertfordshire Bus & Coach Operators Association. It seems worthy of attention.
The idea put forward was to keep the present cost of fuel (including duty and VAT) the same, but to reduce the duty element and increase the VAT element to achieve this. Consequently, zero-rated business users of fuel would be able to reclaim the VAT, and standard-rated businesses could offset it against their VAT outputs.
This would make sure all businesses registered for VAT would have cheaper fuel without giving a price cut to the private motorist An interesting idea, don't you think?
Robert Candlish, by e-mail.