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Old 29th April 2002 | 21:30
  #4 (permalink)  
distaff_beancounter
 
Joined: Oct 2001
Posts: 619
Likes: 0
From: Dorset, UK
Thumbs down Duty on Avgas

There was no change on the duty on Avgas (or petrol) in the recent budget.

As far as I can recall, duty is calculated on the wholesale price of fuel, not as a fixed rate per litre, so it varies as prices move. It is presently about 28p per litre.

Only duty can be reclaimed when taking aircraft out of the UK. The VAT cannot be.

So on the average litre of fuel at about 88p, the Governement not only takes the 28p duty, but about 13p of VAT. And don't forget the Government have already received large amounts of tax that it levies on oil extracted from the North Sea fields. So this tax is embedded in the costs that we pay.

No wonder Avgas costs so much in the UK compared to the USA
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