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Cheaper Petrol Would Mean Higher Taxes

Published on Jan 9 2015 9:58 AM in Retail

Cheaper Petrol Would Mean Higher Taxes

Independent West Waterford TD Mattie McGrath has called on the Minister for Finance to reduce Government excise duty on petrol and diesel.

According to Deputy McGrath, "The cost of crude oil has fallen to a five-year low and that should be reflected in the savings that can be passed on to motorists and employers like hauliers and others in the transport sector."

The Journal reports today that, according to a Department of Finance spokesperson, the suggestion was not realistic because it would result in a tax hike somewhere else.

"The steady reduction in the price of petrol and diesel in recent months, while good news in terms of reducing costs for business and the public at large, has meant a reduction in VAT receipts to the Exchequer in respect of these products."

"Any reduction in excise duties would have to be balanced by an increase in tax elsewhere or by a reduction in public expenditure," he stated.

© 2014 - Checkout Magazine by Jenny Whelan

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