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Swedes vow to boost fuel duty

1st February 2001
Page 6
Page 6, 1st February 2001 — Swedes vow to boost fuel duty
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Which of the following most accurately describes the problem?

• The Swedish government is pledging to finalise an agreement on increasing the minimum fuel duty that European Union member states can charge their hauliers before it passes on the EI.J presidency in six months' time.

Since 1997 the European Commission has been trying to increase the minimum tax levels as part of a long-term plan to close the gap between the highest and lowest.

Spain has so far blocked any attempts to raise the minimum duty levels; its hauliers would face large price hikes if rates were evened out.

At a meeting on 19 January the Swedes made it clear that they plan to resume work to get the proposal adopted.

However, there are still no plans on the table to set a maximum fuel duty rate—this is the plan favoured by the Road Haulage Association.

The RHA has approached the Spanish Transport Com missioner Loyola de Palacio, who is said to be interested in such a plan.

However, a spokesman for Taxation Commissioner Frits Bolkestein stresses that de Palacio does not have any jurisdiction over tax issues and the whole statement may just be a "smoke-screen".


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