As we all know, there are those who insist that a tax break, to not have to pay a particular tax, is a subsidy.
And even busy routes will be hit next year when the tax rebate on fuel for buses is cut by 20%. This simplification makes economic logic, but bus operators point out that trains don\’t have to pay tax on diesel at all. Bertie the Bus could never match Thomas the Tank Engine for glamour.
So just how much is this subsidy to the railways worth? And if we account for it as a subsidy, can railways (outside of the commuter lines into London) ever actually make economic sense?
Yes, even if it\’s electric engines: for as we all also know major users of electricity now have to pay yet even more for the emissions created by the electricity they use.
So, railways not paying that is a subsidy as well, by this logic, no?