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Anger over dery tax 'politics'
Page 5
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STRONG accusations that political expediency is being put before the needs of the country over tax increases on dery have been launched at the Government.
The attack comes from both the Freight Transport Association and the Road Haulage Association, following moves in the House of Commons to remove the extra tax imposed on petrol in the Budget.
But now the Government has decided not to remove the 5.6p a gallon tax increase on derv, the Chancellor has received a strongly worded letter of complaint from RHA director-general George Newman.
In it he says grounds for a reduction in the duty on dery are far stronger in economic terms than the reduction of petrol duty.
The move, says Mr Newman, clearly relies on political considerations.
"The increase in the tax on dery is causing an immediate increase in the price of goods. It is inflationary, and it increases the VAT payable on goods."
Mr Newman also told the Chancellor that goods vehicles pay more than their share of road track costs, and that "on that basis, an increase in the tax on dery is indefensible."
A spokesman for the FTA said: "This is a classic case of political expediency taking precedent over the needs of the country.
"It seems strange that the Government should discriminate against the more efficient fuel."