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Here's a thought for our servants* in the government: cut taxes on fuel and watch general production and job creation blossom like the Karoo after rain.
Initial findings from an independent report by the Centre for Economics and Business Research in Britain has supported a Freight Transport Association’s assertion that cutting fuel duty would be good for business, promote economic growth, create jobs and have only a negligible impact on the contribution to the national fiscus.
CUTTING DUTY 'WIN-WIN'
The initial findings of the report, based on UK Office of National Statistics modelling, were presented to treasury minister Chloe Smith on February 28, 2012 by the FTA and its partners in the Fair Fuel UK Campaign.
James Hookham, FTA’s MD of policy and communications, said: “This report is proof that cutting fuel duty would be a 'win-win' for business and the state. A cut in fuel duty of 2.5 pence (about R0.30) per litre would save truck operators £300-million a year (about R3.6-billion) - a welcome respite from serious commercial pressure.
"More than this, it would create 180 000 jobs in the first year in the UK and increase gross domestic product by 0.3%.
“If the Chancellor went a step further and cut fuel duty by 5ppl it would create a further 30,000 jobs; the short-term hit to Treasury coffers would be relatively small beer in comparison with the stimulus it would provide the economy in the longer term while representing no tax loss.
"Gross domestic product would rise by 0.33%."
Doubling the cut in fuel tax, the report said, would create 210 000 jobs in the first year and any cost to the state would be offset by intangible benefits of increased business and consumer confidence.
'PARLOUS ECONOMY'
Hookham concluded: “This evidence shows that the power to stimulate the economy, actually creating real growth and jobs, is well within the chancellor’s gift.
"The parlous state of the UK economy demands bold and decisive action we now know that being bold with fuel duty cuts supports the government’s objective of stimulating growth. We urge him to extend the logic he used in last year’s budget and cut fuel tax to bind the economy.”
Are you listening, Pravin Gordhan?
*Did you know the word 'minister' once-upon-a-time meant 'servant', as in 'ministering to his needs'?
Initial findings from an independent report by the Centre for Economics and Business Research in Britain has supported a Freight Transport Association’s assertion that cutting fuel duty would be good for business, promote economic growth, create jobs and have only a negligible impact on the contribution to the national fiscus.
CUTTING DUTY 'WIN-WIN'
The initial findings of the report, based on UK Office of National Statistics modelling, were presented to treasury minister Chloe Smith on February 28, 2012 by the FTA and its partners in the Fair Fuel UK Campaign.
James Hookham, FTA’s MD of policy and communications, said: “This report is proof that cutting fuel duty would be a 'win-win' for business and the state. A cut in fuel duty of 2.5 pence (about R0.30) per litre would save truck operators £300-million a year (about R3.6-billion) - a welcome respite from serious commercial pressure.
"More than this, it would create 180 000 jobs in the first year in the UK and increase gross domestic product by 0.3%.
“If the Chancellor went a step further and cut fuel duty by 5ppl it would create a further 30,000 jobs; the short-term hit to Treasury coffers would be relatively small beer in comparison with the stimulus it would provide the economy in the longer term while representing no tax loss.
"Gross domestic product would rise by 0.33%."
Doubling the cut in fuel tax, the report said, would create 210 000 jobs in the first year and any cost to the state would be offset by intangible benefits of increased business and consumer confidence.
'PARLOUS ECONOMY'
Hookham concluded: “This evidence shows that the power to stimulate the economy, actually creating real growth and jobs, is well within the chancellor’s gift.
"The parlous state of the UK economy demands bold and decisive action we now know that being bold with fuel duty cuts supports the government’s objective of stimulating growth. We urge him to extend the logic he used in last year’s budget and cut fuel tax to bind the economy.”
Are you listening, Pravin Gordhan?
*Did you know the word 'minister' once-upon-a-time meant 'servant', as in 'ministering to his needs'?
