The changes outlined in the bill, which is promoted by FairFuelUK, would enable motorists to see how much tax they are paying to the Treasury in both fuel duty and VAT every time they buy fuel.
It is being introduced by Conservative MP Peter Aldous, who said: “As a Conservative politician, I am an inveterate supporter of a low tax economy.
“Yet UK governments of all persuasions have for decades presided over one of the most punitive highly regressive taxes in the world by stealth – fuel duty.
“It’s time to be open and honest with constituents to show how much drivers contribute to public services and our economy. This is morally right.”
At the current price of 120p for a litre of unleaded, 57.95p is fuel duty and 20p is VAT, making the cost of the fuel itself, including oil company costs and retailer margin, just 42p. This means the total tax take per fill-up stands at 65%. However, when fuel prices were lower this time last year, the proportion paid in taxation was even greater at around 75%.
The RAC is supporting the Bill, with fuel spokesman Simon Williams saying: “We have been calling for some time for fuel receipts to show how much of each fill-up goes to the Treasury so we wholeheartedly support the bill being put forward today by Peter Aldous MP.
“Motorists know how much Vehicle Excise Duty they have to pay to keep their vehicle on the road so it seems ridiculous they have no idea how much duty they are paying to the Treasury when they fill their vehicles with fuel. This Bill really shouldn’t be controversial, it is just a long overdue form of transparency that everyone who drives a vehicle ought to be entitled to see.
“We would hope that MPs from all sides of the House will show their support by allowing this Bill to progress and that the Government takes notice of just how popular this measure would be with motorists.”