“Government must act on fuel prices” – TUV leader Jim Allister
TUV leader Jim Allister has called on the UK Government to take action on the spiralling costs of fuel prices across the country.
Drivers in Northern Ireland have been faced with prices at the pump that are now nearing £2 per litre as global oil prices have reached a 14 year high.
Mr Allister said:
“The crippling and astronomical rise in fuel prices demands urgent government action. The burden on families and our economy is becoming unbearable.
“Whereas the excise duty on fuel is fixed, irrespective of the pump price, the higher the price goes the more VAT the government collects, because it is 20% on the end price.
“While vat on some energy commodities, home fuel oil and electric, is capped at 5%, the same could and should be done on fuel prices. In that way HMG could have an immediate and positive impact on runaway fuel prices.”
The North Antrim MLA added:
“In Northern Ireland we have the added restriction of the Protocol keeping us under the EU’s VAT regime (Art 8), and, thereby there is a prohibition on reducing vat below the EU’s minimum diktat of 5%.
“Hence, the absurdity that if the Chancellor decided to remove vat from fuel and electricity, we could not benefit because it is the EU’s writ, not HMG’s writ that rules our vat. Yet another reason why the iniquitous Protocol must go.”