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FA slates EC diesel duty plan as too little, too late
Page 9
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EUROPEAN COMMISSION attempts to harmonise diesel tax across the EU are too little, too late,according to the FreightTransport Association (ETA).
The EC last week confirmed plans to address the competitive imbalance caused by variations in diesel duty across the EU.
These plans have been flagged for some time (CM 15 February). but last week the EC said it would be lifting minimum diesel duty to €330 (224) per 1,000 litres by 2010 and to €359 (.£244) by 2014. The minimum is currently €302 (£205).
The ETA says these increases are too moderate — and some EU states including Belgium, Spain, Luxembourg and Austria have been allowed to opt out.
Simon Chapman , the ETA's chief economist, says:"The role of the EC should be to champion the principles of a free market for goods and services against the self-interest and protectionism of individual member states. On this occasion, the EC has opted for political expediency."
He adds that even if the UK freezes its duty until 2014, UK hauliers will still be paying 23p/lit more than the EU average. If duty goes up with inflation, they will be paying 32p/lit more.
Nonetheless, the ETA wants the UK government to back the EC plan as it allows for duty on diesel used for trucks to be treated differently from diesel used for cars.
• Raising fuel taxes in the Budget would put even more pressure on the beleaguered UK haulage industry, says the Road Haulage Association.
Jack Semple, the RI-IA's director of poliey,warns that any rise in duty would damage an industry that "already pays the highest fuel tax in Europe". He urges Gordon Brown to consider cutting duty rather than increasing it.
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