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Fuel duty does not fluctuate with price - government

The government said this afternoon that duty on fuel were calculated by volume, not price, and therefore did not fluctuate every time the oil price rose, as the surcharge did.

The government was replying to comments by Labour leader Joseph Muscat, who has urged the government to cap its revenue from duty on fuel at last month’s levels.

It said the Labour leader was wrong to argue that the duty operated in the same way as the surcharge, because duty was charged by volume while the surcharge was linked to the price.

And while the oil price had continued to rise, the government had not increased the duty.

The government said it could not understand how Dr Muscat’s proposals to strengthen democracy had included capping of fuel duties.

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Comments

R Agius (on 8/7/08)
@L Galea

A Eurosceptic no doubt! Simplistically blaming 'Brussels petty dictators' for VAT.

Your lijder has not admitted that joining the EU is good for Malta, in spite of the venomous anti EU campaign he was a very prominent member of. Now that he has made the mother of all U turns I don't blame you for feeling so confused about VAT and duty.

Like the PN in Government you have to lump it and move on and make the best of the next few years - the reality is that even if the MLP were elected to power today it would make no difference to VAT rates, duties and the likes. More significantly the price of oil will still continue to rise and the Govt will still need to pay the high price to keep us supplied with water and electricity. The money has to come from somewhere, whether it is tax or surcharge or duty or levy or whatever WE have to pay - no one else!
J Micallef (on 8/7/08)
@ John Saliba

Are you surprised? the kid spent the last 4 weeks bluffing and spreading crap around. Nobody has challenged him so far, because of the so called honeymoon period.

And don't even expect his MPs to come forward. They have let Sant say all those lies about Europe, and all of them kept their mouth shut, including the kid. I am sure that he expects the same treatment as his master.
L Galea (on 8/7/08)
Excise Duty has nothing to do with VAT.

Vat was imposed on the orders of the Brussels petty dictators.

Excise duty is another tax imposed again by the Brussels petty dictators who have also dictated the minimum tax that athe government of a member country can impose on energy products including electricity.

This means that even if the government wanted to do away with VAT and excise duty to help its people it could not do so and it shall have to impose VAT and the minimum tax ordered by the EU petty dictators.
John Saliba (on 8/7/08)
What? Did immature Joseph open his mouth? Surely Labour's EU discovery should have known that VAT on fuel has to stay at 18% and it's non negotiable. Pity, he's got some 33 shadow ministers and not one of them could advise him that fuel duty does not fluctuate with price. This shows that poor young Joe is immature and the rest of his MPs are incompitent. But then it's Labour we're talking about.
Joe Mizzi (on 8/7/08)
Enemalta’s incompetence!

Oil price hikes are a reality and probably these sky-high prices are here to stay for very long time. The surcharge has recently been revised to a staggering 95%. Enemalta states that there has been no drop in consumption in spite of the hefty increase in surcharge. However, their statement does not shed any light on the power outages occurring practically every day (sometimes twice in one day) in different parts of the island. I employ 20 people, I have invested heavily in new and larger premises in an upmarket office area in Ta’ Xbiex, I pay all my dues and yet I am regularly denied access to a reliable supply of electricity in my offices.

As a result of Enemalta’s incompetence, I will have to fork out a further €14,000 + running/maintenance costs out of the company’s coffers to increase the capacity of an existing generator. Alternatively, I will not be able to provide an air-conditioned environment for my staff and my clients during Enemalta’s power outages, which will definitely result in loss of man-power and business. I could have used this money to continue investing in my company’s growth thus providing more employment opportunities.

John Agius (on 8/7/08)
Well, that was quite a big slip from Muscat. You would expect him to be aware of certain basics..
Joe Mizzi (on 8/7/08)
To be quite honest, I am taking this opportunity to question the Government on its responsibility to provide electricity. I was told that I cannot sue the Government (or Enemalta). I have offices in Ta' Xbiex, one storey out of five in a block of offices. We have been suffering power cuts for the last two weeks, practically on a daily basis, sometimes twice in one day. We have no alternative, it seems, but to purchase/upgrade a generator to supply us with the required voltage to run all equipment, including our AC systems, and for all employees to be able to work. The estimated cost for this generator is €14,000 per storey, not to mention the very high running and maintenance costs. As far as I am concerned, I need to run a business and I have to pay wages. I pay my bills and I will do so, with or without capping, surcharge or whatever one may wish to call the price increases. I have no say, no power and seem to have no rights. We are in 2008 not in the 1980's. Need I say more?. Will someone out there do something positive, PLEASE?
Joe Vella (on 8/7/08)
Another case like the Repeater Class, Halving the Surcharge, and so on. One doesn't know what he is talking about, Well, did anyone really expected anything better from the MLP.

Just begining to wonder who wrote the MLP Electoral Program; Couldn't it have been Joseph Muscat.
B.Borg (on 8/7/08)
OK then is not the duty, is the VAT @18%.
Ethelbert Schembri (on 8/7/08)
YES ! AND THE SUN GOES AROUND THE WORLD
J Zammit (on 8/7/08)
Yes but VAT on petrol and diesel is worked out on (increasing) pump prices surely. So the Govt is still coining it!
J Zammit (on 8/7/08)



A collective Ooooops! from Labour.

Shallow Joe Muscat is found out again!


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