TA says tax could Fall by 45 per cent
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URE for an overhaul of excise duty is building th the Freight Transport dion telling the Depend Transport that there is for cuts of nearly 50 per 'rites ALAN MILLAR.
FTA has been having ;ions with the DTp since it ?A a new formula for lorick costs in 1980, and ex) use this as the basis for mission for the promised of track cost calculations is year.
m those figures were ad three years ago, they ed that in 1980/81 )rs were paying 22.6 per )ove the DTp's assessed or lorries' track costs, and ere was a 43.3 per cent m) overpayment if a I FTA formula was used. rding to the FTA, the forhould be revised to allow different degrees of road aused by flows of traffic ferent classes of roads. fould reduce the burden ommercial vehicle Drs who at present bear 50 per cent of all road nance costs.
itest figures show that in 1983/84 the gap has widened to 25 per cent on the DTp's own calculations and to 45.1 per cent (£650m) on the FTA's formula. At present operators are paying £1,440m a year in tax.
FTA director-general Hugh Featherstone said he accepts there is no single "right" way to make track costs calculations, but that it is such a political issue and a matter of such importance to industry that the Government has a moral obligation to make the system as fair as possible.
Mr Featherstone commented on the argument that tax could exceed track costs in order to provide the Treasury with additional revenue: "It is not acceptable to treat lorries as milch cows like alcohol and tobacco.
"Lorries constitute an essential part of industrial plant and the philosophy should be to reduce taxation, not increase it. Moreover, the Government has a declared transport policy for fair competition between road and rail freight, and this can only be secured on the basis of lorries paying their track costs and no more."
The Road Haulage Association is waging the same battle on track costs and vehicle excise duty, and has prepared publicity material to be stuck on backs of lorries and on letters from member companies. This points out the rate of duty being paid for a 38-tonner.
RHA national chairman Harold Russell last week commented on the letter from Transport Secretary David Howell (CM, May 21) which clarified the current position on future tax rates for 32.5-tonners. "He adds, ominously, that no conclusions have been reached about the levels in 1984.
"It seems to me, here is a clear implication that the present track costs assessment formula could be used to impose further swingeing increases at the heavy end of the industry in 1984."