Experts suggest introducing new 'micro tax' on fuel

Date: 18th May 2010

Small business in the UK operating a large number of vehicles could be among those to be affected by new suggestions by one group of experts.

The recently-published Hartwell Paper, which outlines a new direction for climate policy in the UK, includes a recommendation to introduce a new tax on fuel.

Based on the French micro tax model, which has been in operation for 30 years, the funds raised would be used to invest in green transport innovation.

Gwyn Prins, an author of the paper and professor at the London School of Economics & Political Science, said: "When you go to France a fraction of a cent of every litre you buy goes to fund the French institute for oil studies.

"The point about our tax is that it is not intended to change behaviour - it is simply a small unnoticed tax which doesn't change behaviour, but when it's on everything collects quite a bit of money."

It was announced yesterday that the new coalition government will publish an emergency budget on June 22nd.

Posted by Emily Smith