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udget's Irritation'

22nd June 1979, Page 5
22nd June 1979
Page 5
Page 5, 22nd June 1979 — udget's Irritation'
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Which of the following most accurately describes the problem?

MATED AND DISAPPOINTED — that's the road transport ustry's reaction to last week's Budget. Biggest cause for nplaint in a CM snap poll of industry bodies was, predictably, Increase in the duty payable on diesel fuel.

'he duty per gallon went up nearly 7p a gallon from 35p 41.82p, and the price of at some pumps is now und 120p a gallon.

)uty payable on petrol also :it up by the same amount, . stays at 5p less than diesel • y at 36.82p a gallon. Before Budget the Freight Transt Association had pressed this inequity between rol and diesel duty to be noved, or better still, ersed in favour of diesel.

'he Road Haulage Associaa said that it "regretted y much" that dery had been so hard and pointed out tin that dery is primarily id for freight transport, ich is one of the country's ustrial mainstays.

tFIA estimated that the ex 7p a gallon duty alone uld add two per cent to iliers' costs. Freight Trans-t Association agreed, and d its main reaction was sappointment".

Xn the passenger side, the nfederation of British Road 3senger Transport criticised imbalance between petrol dery duty and pointed out it Britain is the only country Europe where the duty on rv is higher than on petrol.

The British Road Federation id the increased duty was Government's way of enuraging energy saving. But !F's spokesman said he was "irritated that the concentration on energy saving is being placed on road transport, even though road transport only consumes 25 per cent of energy.

"Road transport is the only area that tax increases has been applied to discourage use — even though there is no viable alternative to motor transport."


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