No To Increased Fuel Prices.
Brussels -- Wednesday 13 April, 2011
I do not welcome the proposals unveiled today by EU taxation Commissioner Algirdas Semeta. The draft revision of the Energy Tax Directive proposes separate carbon dioxide and consumption taxes on fuels, linked to inflation, which would be adjusted every three years. By 2013 it would compel EU states to institute taxation of fuels based on their energy content and CO2 emissions, rather than the volume-based system currently used.
This would create higher taxes for energy-intensive fuel such as coal and diesel, adding around 8% to a litre of diesel. These proposals seem ludicrous at a time when Britain's fuel prices are sky-high.
Whilst we all want do want to see a greener future by reducing CO2 emissions, this seems to hit people unnecessarily at a time when we are all feeling the pressure of the battering our economy has taken. In addition to this, with so many goods transported by road, increased pricing could see inflation soar.
The draft law also calls for the abolition of a special low rate for 'red' diesel, used by the farming and fishery industries. Yorkshire and the Humber depends heavily on both these industries and the last thing I want for this region is further big brother legislating from Europe, which we know will harm our own area irrespective of the big picture for Europe as a whole.
I intend to study this legislation carefully to see if there is any truth in the claim that these price increases will not enter into force until 2018, by which time the shift to less polluting petrol may be already more evident than today.
