Prior to 1973, there was a tax called Purchase Tax.
In 1973 this was changed to Value Added Tax, at present the VAT on purchases is 20%.
There is another tax called Fuel Excise Duty this applies to the fuel used in Cars, Vans, Coaches Lorries etc. this is currently 57.95 pence per litre.
The big thing is that as well as Fuel Excise Duty being charged, VAT is charged on the Fuel Excise Duty.
In other words, you are paying an extra tax of 11.59 pence VAT on the Fuel Duty.
Businesses with a Turnover above a certain amount can claim that back, naturally, there is manpower needed to claim back what you have paid, but the private citizen has to pay a tax on a tax. Double Taxation.
If a private company or business tried that style of pricing would it be called fraud?
Various Governments like the VAT because a rise of 1% in the VAT doesn’t sound much but spread across a large number of different types of goods it brings in a vast amount of money.
Fuel Excise Duty leads to increased costs on all goods because they need transport of one sort or another.
By the way with Value Added Tax how can you increase the value of something by taxing it, surely all you are doing is increasing the cost?
Does that mean if we pay VAT on say the Prime Minister we get a better Prime Minister?
Message to the Chancellor please do not try this.