Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/543/6310

From The Socialist newspaper, 23 July 2008

Car taxes add to inflation misery

CHANCELLOR ALISTAIR Darling is postponing his proposed 2p in the pound fuel tax rise scheduled for October. But this will bring little comfort to car drivers. Faced with higher fuel prices, around 43% of them will also be paying higher annual car taxes by April 2010.

Mark Pickersgill

This year the government introduces a so-called 'green levy' on heavier polluting cars. Any car registered after March 2001 will be subject to 13 car tax bands based on its fuel type and CO2 emissions.

A Renault Clio owner will pay less car tax in 2010, but the owner of a 4X4 Range Rover will pay up to 450 a year by 2010. Even owners of eight year old Ford Mondeos will see their annual car tax rise to 260 by next April.

These retrospective taxes will hit millions of families who depend on their cars for transport.

The government says the extra 1.2 billion raised by these increases will be invested in developing much needed greener, more efficient forms of energy.

But people will be sceptical: some see the government's attitude towards cars as "nice little earners." The average motorist pays 1,800 a year in fuel duty, car tax, VAT and other levies - up 50% in the last decade.

Fuel duty and VAT make up 60% of the price of petrol at the pumps. 50 billion is collected in taxes from road users, but only 8 billion is spent on improving roads. Some people have no option but to use their cars as other forms of transport are inaccessible for them and woefully underfunded.

Britain's privatised railways received 5 billion in government subsidies but billions more needs to be spent to improve the rail network and ease overcrowding.

The money raised in road taxes and oil companies' and car manufacturers' huge profits are not invested in developing an alternative to the internal combustion engine or to fund public transport.

Instead, car manufacturers and oil companies have used slick marketing campaigns to get people buying large, gas-guzzling vehicles such as 4x4 Sports Utility Vehicles (SUVs). After the 1970s oil crisis, the US Congress mandated US carmakers to build smaller, more fuel-efficient cars. What they got was the SUV.

US car manufacturers marketed SUVs as everyday vehicles but, as they were classified as light trucks, they were not subject to the same limits on fuel efficiency as cars. Selling SUVs gave carmakers larger profit margins; last year they made up half of all vehicle sales in the USA! Oil companies gained too; up until a year ago SUVs accounted for 40% of US fuel consumption.

This annual vehicle tax rise will prove highly unpopular. With the rapidly rising cost of living, workers see this as another attack on their finances. The government may be forced into another u-turn and abandon this part of their 'green agenda'.

Under capitalism, fuel taxes will not improve our transport system, reduce pollution or lessen climate change. Big business' only motive is the pursuit of profit.

The car industry, energy companies and the whole transport system must be brought into public ownership and run under democratic workers' control.

Then we can plan and run our transport system to suit people's needs and eliminate environmental damage, benefiting all of society.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 23 July 2008:

Stop The Gas Price Rip-Off

Car taxes add to inflation misery


Local government strike

Build further action after successful council strike

Reports of the Unsion strike

Pictures of the Unison strike


Socialist Party workplace news

Argos workers strike against insulting pay offer

London bus drivers' protest

PCS strikes

Usdaw election


Socialist Party news and analysis

Punishing the jobless for being jobless

Bankers' dirty tricks?


International socialist news and analysis

Say no to military attack on Iran

Political impasse in the Kurdish region of Iraq

Pakistan: 50,000 textile workers strike


 

Home   |   The Socialist 23 July 2008   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Taxes:

triangleTrump's tax plan: Robin Hood in reverse

trianglePFI privateers dodge tax

triangleNasty party imploding...drive out the Tories

triangleHurricane Harvey: A tragedy made far worse by capitalism

triangleHow can Corbyn's programme be implemented?

Transport:

triangleRail: fares up, bosses' pay up - delays and cancellations up

triangleArriva bus drivers' action wins pay rise

triangleArriva bus strikers stand firm

triangleNationalise rail now

Tax:

triangleCardiff West Socialist Party: How the Poll Tax was beaten

triangleThe Socialist Inbox

triangleThem & us

Oil:

triangleMovement challenges Iranian regime

triangleMovement growing against fracking giant Ineos

Reports and campaigns

Reports and campaigns

17/1/18

Socialist Party

Southern Socialist Party conference: discussing the way forward in 2018

17/1/18

Women

Socialist Party women's meeting brings together members to share experiences

17/1/18

Newham

Packed Newham meeting against academies

17/1/18

Liverpool

Lobby pushes Liverpool council to oppose privatisation

17/1/18

Barking

Heating scandal on east London estate

17/1/18

Policing

Undercover policing legal challenge

17/1/18

Woolwich

No to the Woolwich monster block

17/1/18

Cuts

We must fight all council cuts!

17/1/18

Union

Workplace news in brief

17/1/18

Union

PCS union 2018 elections - nominate the left slate for a continued fighting leadership

17/1/18

Hackney

Hackney school cleaners strike

17/1/18

RMT

RMT strikes against driver-only operation continue

17/1/18

Yorkshire

Ferrybridge: Workers down tools over unpaid wages

16/1/18

Birmingham

Home care workers to strike

12/1/18

Waltham Forest

Outrage against 'monster block' plan

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle16 Jan Home care workers to strike

triangle15 Jan Carillion crisis: Demand action to save jobs and services

triangle12 Jan Outrage against 'monster block' plan

triangle12 Jan Mini-strike wave continues and intensifies

triangle10 Jan Strike wins biggest pay rise in ten years

triangle10 Jan Movement of workers and youth challenges Iranian regime

triangle10 Jan Cabinet chaos as shambolic reshuffle underlines Theresa May's...

More ...

triangle17 Jan Cardiff Central Socialist Party: Planning for 2018

triangle17 Jan Salford Socialist Party: Housing crisis - the socialist solution

triangle17 Jan Hackney Socialist Party: Slum housing in the past; and the crisis today

triangle17 Jan Caerphilly Socialist Party: Mass movement challenges Iranian regime

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

January 2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2