1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176 
FTA gives 'options' for decoupling duty
Page 7
If you've noticed an error in this article please click here to report it so we can fix it.
By Joanna Bourke THE TREASURY HAS been presented with a series of "practical options" for decoupling fuel duty for HGVs from that of other road users by the Freight Transport Association (FTA).
The trade association commissioned PricewaterhouseCoopers (PwC) to develop key ideas to justify lower fuel duty in the UK, taking it from the current level of 50p/lit closer to the average Eli rate of 25p/lit.
The four options considered are:
• Offering a rebate of 25p/lit for UK fuel purchased for HGVs of 38 tonnes and above. Self assessment would be A Hoo required, with quarterly VAT returns.
• Giving HGV operators access to 'blue diesel', taxed at the average EU rate.
• Basing a rebate not on fuel use, but on the distance an HGV travels in the UK.
• Introducing a fuel tank fill restriction for all HGV hauliers. When entering the UK, a maximum of 100 litres of diesel would be allowed, to ensure that UK fuel will have to be purchased for the inbound journey.
James Hookham,
director of policy at the FTA, tells CM: "We are putting the ETA money behind a rebate based on distance travelled."
On the cost to the Treasury, Hookham says: "The ilbn bill is not as big as might be thought."
With the EU intending khamCfree-tor-alr risk to relax cabotage rules,
Steve Best, transport clerk for Heritage International Transport, believes the best option available is to impose a cost on foreign hauliers entering the UK.
See CM next week for further analysis.
The relaxation of cabotage rules will be discussed by the European Transport Council on Friday 13 June. Transport Minister Rosie Winterton will oppose the EUS intention to lift all the restrictions on haulage by 2014.
Potentially, from 1 January 2009, a foreign vehicle will be able to undertake three domestic journeys in sever days, and from 2014, there would be no cabotage restrictions at all.
The ETA's Hookham comments: "There could be a free-for-all from 2014.
"There is a real danger that European hauliers could make British retailers an offer they can't refuse."
In order for the haulage industry to survive, the government must reduce the fuel duty of HGVs by 25p/lit before any restrictions are lifted, he adds.