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Petrol tax

Problems with road spending
Petrol tax combined with other road taxes tend to be higher than the cost of maintaining the roads. Even if the funds were all allocated to roads, the decision on how much and where to spend it would lie with politicians and officials.
A large proportion of road sending goes on
  • bus passengers
  • cyclists
  • pedestrians
  • Disincentivising car travel
Road costs

Problems with Petrol tax

  • High fuel prices hamper just about every economic activity by raising the costs of trading.
  • Fuel duty lowers labour mobility
  • Motoring taxes increase welfare dependency by raising travel to work costs. Negative impact on employment.
  • Fuel duty discriminates against rural, semi rural and suburban areas.
  • Poorer motorists are disproportionally hurt
  • Fuel Duty is an inefficient way of addressing the wider costs associated with road transport. The amount paid bears little relation to congestion levels, accidents, infrastructure costs  and local environment impacts.
  • There is already a general sales tax, why should this sector pay special taxes on top.
  • If the assumption is to transfer from rich to poor, then fuel tax is a bad way of doing this as most people own cars.
  • Vehicle tax is charged even if a vehicle is not used.
  • Relationship between road tax and chance of accident are very weak.
  • Taxing based on carbon should be applied equally to all carbon producing activities, not just car usage. Train and bus usage receives subsidy despite creating carbon as well.
  • Cheap to collect and difficult to avoid

Tolls could be charged at different levels in different locations and times.