Britain announces emergency fuel tax cut due to inflation crisis

LONDON, March 24 (YPA) – British Chancellor of the Exchequer Rishi Sunak announced on Wednesday an immediate fuel tax cut as well as a long-term tax cut for workers in an attempt to mitigate the effects of inflation affecting living standards.

“Sputnik” news agency quoted Sunak in a statement to lawmakers as saying: “His ministry will reduce fuel surcharges by 5 pence per liter for a period of 12 months.”

It is a tax cut that Parliament has said would cost the government 5 billion pounds ($6.6 billion).

The decision entered into effect from 6 pm UK time, Wednesday, and the government hopes that the reduction will lead to a decrease in the cost of gasoline at stations amid rising global oil prices, CNBC reported.

Sunak also announced a reduction in the basic rate of income tax and said: “For the first time in 16 years, the basic rate of income tax will be reduced from 20 to 19 pence per pound… It is a tax cut for workers, pensioners and savers.”

The pressure on the cost of living in Britain increased last month, according to official figures showing that inflation reached 6.2% in February, its highest level in three decades.

YPA