CONWY, NORTH WALES - Independent fuel marketers in North Wales are facing huge potential rate increases as a result of the revised tax valuation scheme established by their government??s Valuation Office Agency, the Daily Post reports.

Independent operators are now being assessed fees based on turnover rather than square footage or profit, and the change is threatening the survival of many of the region??s stations.

"Instead of being based on square footage, the new demands are based on total turnover in our filling station and convenience store," said Terry Williams, a retailer in Denbigh. "The profit margin on fuel is very small, even though turnover is high. We also have a Paypoint facility in the store at which people can pay utility bills. But for every ?100,000 we take in payments we probably make just ?7 to ?8 profit."

As a result, Williams said that his tax rates have spiked four-fold this year, from ?4,200 ($6,384 U.S.) a year to ?17,250 ($26,222 U.S.). And he must pay the first installment of ?780 ($1,186 U.S.) this month before he can begin the appeals process.

"Businesses close for all sorts of reasons - they have the wrong product, don??t have enough customers or have bad management - but for them to be forced to stop trading because of a tax is crazy," said FSB North Wales regional organizer Mike Learmond. "It is something the government needs to look at as a matter of urgency before we lose any more independent filling stations which play an important part in helping to keep the rural economy ticking over."

The Retail Motor Industry Independent Petrol Retailers Association said that the rate hike could put 200 mostly rural Welsh filling stations out of business, at a loss of 1,000 jobs.

The new taxation scheme considers fuel throughputs, shop turnover, and car wash facilities, as well as how the rental market treats those elements.