Driving Towards Fairness: Time to Slash Petrol Taxes?

Hello, Dear Readers:

Today, I come to you with an idea aimed at alleviating the financial burden on our most vulnerable citizens: slashing taxes on petrol. I try to champion ideas that promote fairness, equality, and economic well-being for all Scots. And I believe that reducing taxes on petrol is a crucial step towards achieving these goals.

Let's face it: the cost of living is rising, and many families are struggling to make ends meet. For low-income households, the rising price of petrol can have a disproportionate impact, eating into already stretched budgets and making it difficult to afford basic necessities like groceries, utilities, and transportation.

Fuel duty is currently levied at a flat rate of 52.95p per liter for both petrol and diesel, while VAT at 20% is then charged on both the product price and the duty. Surely, that’s an insane amount of taxation for a commodity that most people cannot live without.

By slashing taxes on petrol, we can provide much-needed relief to these families, putting more money back in their pockets and helping them to better cope with the rising cost of living. This would have a direct and immediate impact on their quality of life, allowing them to spend less on petrol and more on essentials like food, housing, and healthcare.

But it's not just about helping the poor — reducing taxes on petrol can also stimulate economic growth and support local businesses. Lower petrol prices mean lower transportation costs for businesses, making it more affordable to transport goods and services and boosting competitiveness in the marketplace. This, in turn, can lead to job creation, increased consumer spending, and a stronger economy overall.

Now, I know what some of you might be thinking: won't slashing taxes on petrol harm the environment by encouraging more driving and increasing carbon emissions? It's a valid concern and one that we must address. That's why targeted investments in sustainable transportation alternatives, such as public transit, cycling infrastructure, and electric vehicles must accompany any reduction in petrol taxes. By making it easier and more affordable for people to choose greener modes of transportation, we can mitigate the environmental impact of lower petrol prices while still providing much-needed relief to low-income households.

Slashing taxes on petrol is a win-win-win proposition: it helps the poor, stimulates economic growth, and supports our transition to a greener, more sustainable future. I believe that reducing taxes on petrol is a critical step towards building a brighter, more inclusive future for our nation.

They can make up the tax revenue by taxing foreign visitors who enter the country as they do in many places. Read Here

Until next time,

Maggie McGown