Taxman's profits bigger than fuel company's, says The Motley Fool

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Taxman's profits bigger than fuel company's, says The Motley Fool

Fri 26th Feb 2010

Consumers who are unhappy with the amount of profit being made by British Gas should instead be focusing on the money made by the tax office, according to The Motley Fool.

Although British Gas has been recording record profits as the price reduction in wholesale gas has not been passed on to consumers, it is the taxman who is making the most out of annual energy bills.

The website stated that an annual energy bill of £971 will see around £6.15 in profit going to the supply company.

However, the tax office will take £48.55 a year through the five per cent VAT levy.

David Kuo, director at the financial website, said that fuel bills may rise as VAT increases to 17.5 per cent. Consequently, households could experience a 12 per cent inflation-beating hike in fuel bills in the next budget.

Another business which has seen high profits is Barclays, with The Motley Fool stating that the results should be celebrated as it beat the sums earned by Santander and Deutsche Bank.

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