Letter: A tax too far

I DO NOT understand the Government's preoccupation with indirect taxation, and its stubborn refusal to raise direct taxes (except sneakily by not indexing allowances).

Taxation must be seen to be fair. You cannot expect pensioners and low-income families to be impressed when they are asked to pay VAT on fuel when they reap little, if any, benefit from tax reductions.

Has it not occurred to the Government that not only do OAPs pay a disproportionate amount of tax on their income but they also need to use some form of heating throughout the day in the winter.

One of the advantages of direct taxation is that the rates can be reduced when and if times get better. But when did we ever see a reduction in the VAT rate? It also has the merit of clawing back, at the highest rates of taxation, universal social benefits such as child allowance and pensions.

And why should companies be taxed as low as 33 per cent when the country is in such a desperate need?

R G White

Guildford, Surrey