In-Briefs

Britain: Rise in Gas Taxes Expected in August

June 25, 2012
| Economics, Energy
| Europe
In August, British motorists will face a 3 pence (4.5 cent) rise in petrol taxes . . . the tax increase means drivers will now pay over 6.3 pounds ($9.75) per gallon . . . the Daily Mail reports that gas prices in the UK have dropped over the past several months thanks to a decrease in global demand . . . the price decrease has allowed government officials to stand behind the tax increase, saying it needs the 1.5 billion pounds ($2.25 billion) revenue it will generate . . . critics say the move could cause fuel protests, such as the ones seen in 2000 . . . the Prime Minister has been pressured by senior Tories to stop the fuel increase over fears it will further impact their declining poll numbers . . . the rise in the gas tax may cause increased social unrest in Britain, and prolong economic recovery . . . despite protests, it is expected a tax increase will go into place, though it may be reduced from 3 pence to 1 or 2 pence to help ease public anger while still generating new government revenue.     
 


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