Commenting Mr Wilson said,
“Fuel duty and VAT make up 50% of the cost of our fuel with green taxes attributing another 7%. With people about to pay £2 per litre, this is not a sustainable position for the Treasury to take. Whilst Treasury may argue that any such cuts cannot be applied to Northern Ireland due to the NI Protocol, we urge them to get on with it and let the EU take us to court.
Road users can no longer fill their vehicle at the card only pumps as each card transaction is limited to £99. The costs are not only eyewatering but crippling. £120 to fill a family car.
When fuel was half price, the Treasury was still lifting VAT as a percentage of the cost but with the pump price now double, the VAT tax take will also have doubled. The Treasury will be delighted with the extra revenue, but this is not sustainable for people in areas like Northern Ireland, where public transport is not available in rural communities. We depend on road vehicles to move goods and provide services in a way that people in urban environments do not.
I have written to the Chancellor and reminded him of our proposals back in March when we urged that fuel duty be cut. Families have no option but to pay for fuel as they need to get to work but if these costs continue, then there will be no option but to scale back on work which itself will have a cost to the Government as more families will require welfare support payments.
The Government must make it affordable to work and travel to work.
I am glad the Government listened to us and introduced a windfall tax on energy companies because their profits were soaring because of macro influences rather than commercial decisions. The Treasury, however, has also benefited from a tax windfall. It is time they recognised the pressure at the pumps and take an axe to the 50% of taxes that make up our fuel costs.”
