tailieunhanh - THE ECONOMIC AND POLITICAL CASE AGAINST HIGHER FUEL DUTY

People raise chickens all around the world under widely varying cir- cumstances. Their main objective is generally the same: maximum production for minimum costs and with minimum risks. The two main forms of keeping small-scale chicken are small-scale subsistence farming and commercial farming. If poultry is mainly kept for home consumption of eggs and meat, costs and effort can be kept to a minimum. But for a poultry enterprise to be successful, it must have a reliable market for its products and a steady supply of reasona- bly priced quality feed. It is important that feed resources are locally available. See figure. | EMBARGOED UNTIL 00 01 FRIDAY 7 MARCH 2008 RESEARCH NOTE 28 THE ECONOMIC AND POLITICAL CASE AGAINST HIGHER FUEL DUTY Key points With the surging oil prices of recent months the high level of fuel duty is once again a prominent issue for the 56 per cent of people who drive or ride a motorcycle to work every day. Alistair Darling s first Budget should scrap the 2p rise in Fuel Duty planned for April. In the medium term Fuel Duty should be on a downward path. There are several factors that make lower fuel duty politically popular - The population of the most marginal 100 Westminster constituencies in England and Wales are almost 7 per cent more likely to drive to work than those in the least marginal 100 constituencies and travel 13 per cent further to work. - People on middle incomes often swing voters spend the most on petrol as a share of their earnings - as high as per cent of their gross weekly income - and therefore pay the most Fuel Duty. - YouGov polling commissioned by the Taxpayers Alliance has found that 60 per cent of the public consider Fuel Duty unfair against just 17 per cent who think it fair. Academic and official estimates of the social cost of carbon dioxide emissions when compared to the amount of UK road transport emissions and net motoring taxes suggest that motorists are already heavily overtaxed - Net motoring taxes Fuel Duty and Vehicle Excise Duty net of road spending are between three and thirty-nine times the social cost of UK road transport carbon emissions. - This means each motorist is already paying between 413 and 571 a year more than is fair - as defined by environmental economists - in motoring taxes. These high rates of specific motoring taxes are unfair as motorists already pay other taxes such as VAT on petrol and cars. Overcharging motorists can do serious economic harm by increasing the costs of commuting and moving goods. 43 Old Queen Street London SW1H 9JA 1 0845 330 9554 office hours 07795 084 113

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