Fuel profits

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Thomas McCafferty (Letters, 18 August) wants to know why we don’t have lower taxi, bus, rail and air fares as a result of the falling cost of diesel, and asserts that companies which provide such services have essentially had a corporation tax cut.

I would say two things: first, aircraft don’t use diesel.

Second, if a company’s cost base reduces but its revenues stay the same, then its profits will increase.

If its profits increase, then its corporation tax liability also increases (corporation tax being a tax on profit).

Robert Miller

Bracken Avenue