| Gludy |
| (regular) |
| 27/04/2004 22:05 |
Re: Responce from HM Treasury
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"It will take a MASS exodus of boaters to reduce the tax yield and that will just not happen"
In Swansea we pay about £1.20 per gallon for diesel - this will go up 400% and not one single boater I have met can afford to continue boating after such a price hike. A boat that now uses say 15 gallons an hour on today's terms would suddenly in today;'s terms shoot up 4 to five fold = equivalent fuel consumption of 60 to 75 gallons per hour - a boat that now does 50 gallons an hour will be costing the same as if it did 200 to 250 gallons per hour at today's prices.
There would be a dramatic effect on the entire power boat UK market.
One £300,000 boat built and sold in the UK yields say about £135,000 in government revenue (VAT, tax from all the salaries, wage costs, corporation tax etc.) The same boat goes on in running costs to provide well over £10,000 p.a. yield to the treasury. Combine this with the fantastic drop in fuel consumption that would have to happen and you are looking at a net loss in total tax yield. There is just no way that the tax yield can be the same or higher than it is today - it would drop. I would like the RYA or a magazine to commission a proper report on this - I cannot see other than a dramatic drop in tax yield.
Now would anyone really want to purchase a power boat for use in the UK - the only market left would be the round the bay small speed boats.
Paul