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30th July 2009, Page 9
30th July 2009
Page 9
Page 9, 30th July 2009 — 0 • inion
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Which of the following most accurately describes the problem?

The FTA's James Hookham, says the government is not heeding increasing ill-feeling about its tax policies.

According to a report last week by the House of Commons Transport Select Committee (turn to page 6), road users don't like paying tax. This is hardly earth-shattering news, but the more interesting finding of the committee was that road users don't like it because they feel they're being played by the government.

Its not necessarily the tax per se that's the issue, more the rationale behind it. One minute the tax be it vehicle excise duty or fuel duty is levied to improve infrastructure, the next it's for the environment.

Of course, the logistics sector is only too familiar with the ever-changing justification for the taxes we pay, which is probably why many within the sector are so cynical about them. Many of us are frustrated at being taken for fools. We know that we need to pay our way, but we'd much rather the government was honest about why.

It doesn't take Robert Peston to see that the UK's books aren't looking good. There is a massive deficit, banks to prop up and a diminishing return from every type of tax because of the economic downturn. As a result, the Treasury needs money, and fast. And that's where road transport private and commercial comes in as the government's favourite cash cow.

According to the Select Committee's report, transport-specific taxes and charges equated to £30.9bn in the 2007/8 financial year. That's enough to buy a fairly decent share in one of the seminationalised banks. In fact, that's probably where most of it ended up, as only just over £13bn was reinvested in the national and local road network, Dousing every pronouncement on road taxes and fuel duty with a heavy bit of greenwash is fooling no-one, so why does the government, and those who seek to succeed them, continue doing it?

The message to politicians from us and from the Transport Select Committee is simple: treat us like the adults we are. Only then will we be able to have a full, frank and, dare I say honest, discussion about the way the logistics sector pays its way.

• A longer version of this article can be read on www.roadtransport.comfblogs/opinions


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