UK hauliers pay too much tax, says FTA
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NEW EVIDENCE that UK hauliers are the highest taxed in Europe has been brought forward to persuade Chancellor Nigel Lawson to reduce dery tax in the Budget.
Following a visit to EEC officials in Brussels last month, the Freight Transport Association says that the rate of taxation on heavy lorries in the UK is the highest in Europe.
Compared with Italy, the lowest rate in Europe (£260 tbr a 38-tonner), the UK's rate of £3,100 is 12 times heavier, the FTA says.
This competitive disadvantage means that the need for the Chancellor to cut lorry taxes in next week's Budget is even more vital, it says.
The FTA is sticking to its demand that the Chancellor cuts dery tax by 15 per cent, despite widespread rears that Lawson will increase fuel tax while taking advantage of falling world oil prices.
EEC officials told the ETA that the UK is the only EEC: state which has fully adopted the draft directive on harmonising the calculation of vehicle taxes.
Its research shows that the tax rates in the rest of Europe are so low in comparison with the UK that there is no prospect of the tax rates becoming comparable.
At the same time, with the UK and Ireland lagging behind the rest of Europe's agreement to allow the 40COMIC international vehicle later this year, the British Isles is left as the "poor relation" in Europe.
"The only thing we're good at is taxing lorries," FTA planning and information director Richard Turner complained to CM.
The FTA hopes that the EEC will be persuaded to give money to the Government to help strengthen bridges as part of a compromise formula to allow 40 tontiers in the UK and Ireland.
But the EEC report on the UK and Irish infrastructure will not be ready befOre mid1987, Turner predicts. Only after this, could such a compromise be discussed.
• The FTA has also just published a report which recommends ways of liberalising the movement of goods in the EEC. EEC — The Free Movement of Goods/ The Liberalisation of the European Freight l'ransport Market says that border formalities should be reduced to a minimum.