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KEEP TAX IN OUR HANDS

1st August 2002, Page 20
1st August 2002
Page 20
Page 20, 1st August 2002 — KEEP TAX IN OUR HANDS
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Which of the following most accurately describes the problem?

I was most interested to read in the Financial Times that the EU Commission is proposing that excise duties be harmonised across the community.

At first sight, one would imagine the operators of transport welcoming such a plan since it may appear to reduce fuel duty but of course the matter is far more complicated than that.

We in industry cannot exclude ourselves from the huge debate as to what the future of Europe might be, with, on the one hand, some wanting a so-called "centrally-governed superstate" with everything harmonised, while others want a 'community of nation states" co-operating to promote joint interests.

Unfortunately, the call by the EU for fuel duty harmonisation is, in my view, political dynamite. Those who persist in their demands for harmonisation of everything are the ones who wart ore set of rules, one state and one government across Europe. Thankfully, the Treasury has put the case consistently and that is that taxation is a matter for the British government and that attempts by stealth to harmonise policy bit by bit is quite wrong. Aren't we told there is no plan to harmonise taxes? We will recall that the Prime Minister acclaimed at a recent EU Summit that the principle of "subsidiarity" was now established and through this, decisions would be taken wherever possible at a local or national level. Sadly, once more, this proclamation seems to have been no more than for headlines in newspapers rather than a firm action by the government to assure us that the principle would be enforced, Once more, grand words but little action.

Perhaps readers will find it peculiar that one could pick up a proposal of harmonising fuel duty and thereby reducing transport prices and then use it an an example of how the EU Commission is actually attempting to bring about its dream. Thankfully, the British Treasury has persistently resisted and made it clear that the British government stands by the principle that taxation is a matter for nation states. If we wish fuel duty to be reduced then it is our elected government that we should address and we should resist even more power being handed over to Brussels. Taxation is one of the few powers now left in government hands and so it must remain.

Stuart Archbold ORE,

Archbold Freightage, Leeds.

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People: Stuart Archbold
Locations: Brussels, Leeds

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