Gvw tax on cards in Fowlees new Bill
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A REVISED basis for calculating vehicle excise duty on lorries is the main feature for the industry in Transport Minister Norman Fowler's second Transport Bill. As expected, privatisation of heavy goods vehicle test stations is being left for a later date, reports ALAN MILLAR.
Mr Fowler has long promised to revise the ved system so that the rate of tax reflects the damage which the heaviest vehicles cause, and that they cover their allocated track costs. His Bill appears with the blessing of last week's Armitage Report.
For vehicles under 12 tonnes gross, he proposes that duty be based simply on gross vehicle or gross train weight, while the number of axles will also be taken into account on heavier vehicles — those with fewest axes in relation to their gross Neight will pay most tax.
Vehicles below 30 cwt will not :ome under the proposed 3tructure.
While the new basis for ved, Nhich replaces the current 3ystem based on unladen Neights, is incorporated in a fransport Bill, they will have to 3wait a Finance Bill before they an be brought into effect.
And that means it will be up to :hancellor of the Exchequer Sir 3eoffrey Howe, or a future :hancellor, to decide whether Armitage's recommended extra £800 tax for a 32.5-tonner should apply, or if something larger should go on operators' costs.
Commenting on the Bill, a Road Haulage Association spokesman said he hoped the Government would recognise that goods vehicles as a whole more than meet their track costs, and that the lighter weight vehicles would have their tax reduced.
The RHA has also welcomed the omission of test station sales from the Bill, saying it hopes that Mr Fowler recognises the "reality of the matter", with most of the road transport industry being unequivocally opposed.
But the department of Transport has, in fact, maintained for some time that test stations will be treated separately, and that this Bill is a hotch-potch intended to clear up assorted stages of the Minister's ambitions.
A DTp spokesman confirmed this week that test stations' sale is still in Mr Fowler's diary for future legislation, but that he still needs time to take account of the submissions which have been made by the industry.