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Piggyback booster

19th October 1989
Page 9
Page 9, 19th October 1989 — Piggyback booster
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Keywords : Rebate, Sales Promotion

• A new EC scheme to popularise multi-modal transport through tax rebates for hauliers using piggyback trains has been drafted in Brussels.

The idea is to force national governments to grant rebates of up to 100% of the vehicle exise duty. A similar scheme operates successfully in West Germany where the high level of road tax — about £3,350 a year for a 40-tonner — makes the excise duty rebates particularly attractive.

The EC's transport directorate is anxious to encourage multi-modal transport. Besides reducing congestion and accidents, they see it as the way of solving the Swiss and Austrian transit problems.

The Eurocrats propose a 25% reduction for 31-36 piggyback journeys a year; 50% for 61-90 journeys; 75% for 91120 journeys and a complete refund for more than 120. Trips of more than 400km would count as two journeys, and more than 800km as three journeys.

At present the average piggyback trip in international transport in the EEC is 900km and about 600krn in national markets.

Similar schemes operate in several other EC countries, including Belgium and Holland, but they are not very effective because road usage taxes in these countries are lower and the rebates are correspondingly less attractive.

"I believe a scheme along these lines would do much to boost combined transport," said Martin Burkhardt, Brussels liaison officer of the International Union of combined road/rail transport companies.

"But it won't work properly until all EC countries charge the same level of vehicle exise duty," he says.

Tags

Organisations: International Union
Locations: Brussels

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