Rishi Sunak may hike fuel duty could by 5p.
Even though there’s been a ten-year freeze on the tax, there’s a possibility that this could be lifted to help pay for the coronavirus pandemic.
By doing this, motorists would notice an extra 2p a litre added when filling up their cars.
But according to a Treasury source, the Chancellor could be planning to add another 3p to this stamp duty.
Critics are concerned that everyday workers will be the ones who are impacted by the tax increase, which could potentially cost them hundreds.
Senior Tory MP Robert Halfon told The Sun: “Now is not the time to clobber workers, families, white van men and women and our public services with a fuel duty increase.”
These thoughts were echoed by an unnamed minister who spoke to The Telegraph.
They argued: “This is not the time to be increasing tax.
“The cost of coronavirus is a one-off, and to pay off the debt you have to grow the economy. We should be looking to cut corporation tax and other taxes to increase transactions.
“Putting taxes up now would be like acid rain falling on the green shoots of recovery.
“If you increase capital gains tax, for instance, people will just stop selling their assets, so you will get less tax revenue.”
And according to the Daily Mail, a cabinet minister warned the Chancellor to prepare for a revolt if these types of tax hikes are implemented.
They commented: “Tax rises of this sort would be the worst possible economic policy to adopt right now.
“It would guarantee a much deeper recession. Large parts of the economy are still fragile – we need to nurture it, not throttle it.”
Source: Read Full Article