Hauliers want ship tax rep
Page 12
If you've noticed an error in this article please click here to report it so we can fix it.
• by Karen Miles Tax changes announced by John Prescott to tempt back ship operators who are flagging out fleets abroad have spawned demands from hauliers for similar treatment.
The announcement of agreement between the deputy prime minister arid Chancellor Gordon Brown to tempt merchant ship operators back from cheaper foreign regimes by introducing a tonnage tax was predicted in March's Budget when Brown said he had commissioned an independent study of the issues.
Following last week's announcement, the Treasury refused to comment on the likelihood of the chancellor easing the fuel duty escalator and vehicle excise duty tax burdens for UK hauliers.
But truck operators are arguing that if the Government can accommodate ship operators who are flagging out, then it should do the same for struggling truck operators.
The Freight Transport Association says the principles contained in the tonnage tax for merchant ships should bring about a fresh look at UK lorry taxes.
"Mr Prescott must recognise the severity and urgency of the current situation for UK industry currently paying such high read taxes," says FTA director general David Green.
The Chancellor's pre-Budget report in November could provide an opportunity for Brown to act but sources close to the Government says while it has been taken by surprise by the strong feelings about the fuel escalator, any Uturn would represent a large change in policy, probably taking some time to occur.
Prescott has already hinted that "special assistance" could be made available for small hauliers (CM 13-19 May).