how is tax worked out in the UK on petrol?

There is a fuel duty, currently about 50p per litre of petrol or diesel. There is also VAT, at 17.5%, which is added to the actual cost of the petrol AND the duty. So the government gets VAT on the duty which is effectively taxing you twice.

Example:

The actual cost of a litre of petrol is 50p.

The duty is 50p.

So the total cost is £1.00 ex VAT.

The cost including VAT is £1.17 (and half a penny).

If VAT wasn't charged on the duty the total including VAT would be about £1.09. I.E. VAT on the duty costs about 8p per litre of petrol or diesel.

Oh you mean that they tax a tax - clever huh ? There is the duty and then there is VAT on the whole price of the fuel.

The 2008 budget puts duty at:

Fuel duties

All fuel duty rate changes will take effect from 1 October 2008.

Pence per litre (unless Old duty Change New duty rate

stated) rate

Ultra-low sulphur 50.35p +2p 52.35p

petrol/diesel

Sulphur-free 50.35p + 2p 52.35p

petrol/diesel

Biodiesel 30.35p +2p 32.35p

Bioethanol 30.35p + 2p 32.35p

Liquefied petroleum gas 16.49p per + 4.28p per kg 20.77p per kg

used as road fuel kg

Natural gas used as road 13.70p per + 2.89p per kg 13.70p per kg

fuel kg

Rebated gas oil (red 9.69p + 0.38p 10.07p

diesel)

Fuel Oil 9.29p + 0.37p 9.66p

You open your wallet or purse and say, " George, take as much as you like"

And he does.

Dogs bark, cats purr and a Labour Government will increase taxes. It is in the nature of the beast.

acording to the law it is illegal to tax a tax but the goverment choose to ignore the fact

The Chancellor thinks of a number then trebles it

its worked out as everything else is .......in the uk..... to take as much money out of your pocket as possible....so keeping you poor