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We must change how taxes are levied on fuel

THE price of petrol and diesel fuel is playing a large part in driving inflation. The boffins who calculate these things across the EU know this and yet they are proposing to increase the interest rates, which is negatively affecting economies across the EU.

The governments of all EU countries are levelling incredible taxes on petrol and diesel. In Ireland we have duty on a litre of fuel, a carbon tax and then VAT on top. We effectively have a tax upon a tax upon a tax. Where is the “value” in duty? where is the value in the carbon tax? It has never made sense and it doesn’t make sense now particularly as it is driving inflation, which in turn drives the interest rate and makes everyone’s life more difficult.

Higher vehicle fuel costs affect everything that is transported to, from, and around the country, which in turn affects inflation and results in less travelling by people to other parts of the country and higher costs all round. This must be particularly hard on tourist businesses, because a tipping point has arrived and people are thinking twice about enjoying a break away.

Maybe revenue is up on fuel duties and taxes, so the government is happy, but maybe it’s not because people are travelling less and yet those businesses which need people to travel are losing out. Maybe it’s overall less income tax and VAT from businesses, which need people to travel.

It’s time to re-configure how taxes are levied on fuel.

Paul Ó Riain

North Wall

Dublin 3


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