Pre-election tax snub on tax rates
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IER tax rates on heavier lorries announced in the March Budget o go ahead despite the shortened Finance Act which was being ed this week to make way for the June 9 General Election.
bour MPs agreed to the inon of the new rates when it me clear that otherwise would be enormous admiative difficulties if operators to be paid rebates.
the new rates had not been Ided in the Act, then last 's rates would have to have ied.
t the government has given iers a pre-election snub in campaign for lower vehicle ;e duty rates for heavier cies.
■ ancellor of the Exchequer 3eoffrey Howe has told the Haulage Association he )pts operators' concern it the effect which current levels have on their busies, but he has no intention iaking any changes in the cle excise duty rates.
:teed, Sir Geoffrey told the that the rate for the 32.5 e vehicles still does not cover road track costs at present, ying that a further increase ry much on the cards.
is message has been cornwith increasing strength Whitehall since the Budget, the Department of Transindicating that an increase round 25 per cent can be Icted by the next Budget.
le Government has been delined for some time to match duty rates for vehicles to their attributed road wear costs, and it was only the fear of total outrage among transport operators that stopped it from making the complete jump to "true" rates in the last Budget.
In his letter to the RHA, Sir Geoffrey did repeat the offering of a Government olive branch in the form of a review of the DTp track costs formula (CM, April 23). A consultation document will be issued later this year.
This is an area in which there is all-party agreement on tax, and the return of a Labour Government would do nothing to alter any attempt to reduce tax increases.
In an advance text for his speech at this week's RHA annual dinner (written before the General Election announcement), national chairman Harold Russett accused the Government of having "put paid to any hopes that the 38 tonne lorry would rapidly bring any of the economic and environmental benefits" by raising its excise duty rates in 1982 and 1983.