This section refers to the increase in excise duty on petrol. We collect £1.3 billion in motoring taxes. An increase of 6p or 8p on the price of a gallon of petrol is all very well when the price of oil is coming down. However, we tax petrol very heavily and I caution the Minister about taking any further steps on this in the future. Since we are under pressure for time as we must get to amendment No. 171, I will let it go at that.
SECTION 77.
Question proposed: "That section 77 stand part of the Bill."
We have had a great deal of discussion on taxation in general and I wonder whether the Minister would consider at a future stage the feasibility of allocating some of the revenue from motor taxation, in particular from petrol, directly to local authorities. Many of the other proposals which emanate from different quarters are, essentially, not going to be runners. It makes a great deal of sense to allocate a portion of the revenue generated from petrol or motor tax to help local authorities to deal with the financial crises they face. It could be an important extra source of revenue generation.
Everyone is looking at property taxes, rates and so on and we will be going around in circles on those issues for a long time to come. We should look at that area to assist the financing of local government. The last report of the commission on taxation suggested an energy tax with which I have some difficulty. However, there is a very strong case to be made for the provision of revenue from this source, particularly for the building and maintenance of secondary roads.
The cost of a litre of petrol in this country is not out of line with other EU member states. In Ireland a litre of petrol costs 58p, in Belgium it is 68p, Denmark 55p, France 67p, Germany 61p, Greece 57p, Italy 67p, Luxembourg 52p, the Netherlands 70p, Portugal 61p, Spain 54p and in the UK it is 59p.
What about VAT?
That is the total price. The prices are not that far apart; we are not out of line.
Question put and agreed to.