• Govt to review ts tax calculations
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IOVERNMENT is taking a fresh look at the basis for its vehicle duty calculations, but it is not certain that this will stop er mammoth jump in tax rates for 32.5-tonne lorries in next Budget, writes ALAN MILLAR.
;istent lobbying by both oad Haulage Association le Freight Transport Assoon their view that the calms of individual vehicles' :osts are wrong appears to mrsuaded the Department nsport to take another look ormula.
ive-man RHA delegation the RHA learned this on ay when it met Transport :ary David Howell for two s to discuss various ge industry grievances, ly tax rates.
le Mr Howell insisted that tes were a matter for the ellor of the Exchequer to ), he promised that the in. will be consulted on the pining proposals for a
d track cost formula, and .1ould be ready in the Ui RHA wants an indepen-eview to be carried out
into the calculations, partly because it has no faith in the American Association of State Highway Officers' laboratory condition tests that were used to establish road wear, but it says it is happy to accept a DTp internal review if the industry will be consulted before any change is made.
On present calculations, 32.5tonners still do not cover their track costs, according to Mr Howell, and he said nothing to diminish suspicions that another massive leap in their excise duty is in the pipeline for 1984.
Clearly, this would disappoint the RHA and FTA, and RHA national chairman Harold Russett commented last weekend that the "ridiculously high" rates being paid for these vehicles were "just about the last straws" for the industry.
The FTA is also pressing for the review of track costs, and has been campaigning for this since 1980.
The RHA asked Mr Howell on Monday for an assurance that if the revised track costs formula is not ready before the next Budget, then any excise duty increases will be kept in line with inflation.
While the FTA has been pressing the Government to enact its down-licensing powers in the 1982 Finance Act, the RHA is lukewarm on the idea, saying it supports down-licensing provided it can be operated on an equitable basis and that it can be enforced properly.
After Monday's meeting, the chances of such criteria being agreed looked slim as the Government insists that any concession given to operators running nominal 38-tonners, say, at 22 tonnes at all times would have to be matched by higher tax rates for other vehicles if the total tax take is the same. The RHA fears that any increase will have to be borne by those operators who cannot predict their loads so precisely, and that means hauliers generally as they are at the mercy of their customers. It also fears that this could lead to particularly heavy increases on heavier lorries, and it wants their rates to be reduced.
Mr Howell also indicated that the F-licence concessions to operators of farmers' goods vehicles will probably remain although the exact rates of duty may be increased. This has still to be discussed with farmers.