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Finance Bill

The argument here is about equitable taxation. There are two parts to the taxation on a litre of fuel—duty and VAT. The argument for our rural fuel derogation is that it would ensure that the higher tax being paid in such areas was reduced, so that the tax was equitable—or at least as close to equitable as we could get it—across the UK, instead of people in rural places, particularly islands such as those that comprise my constituency, paying more tax on a litre of fuel than anyone anywhere else in the UK.