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Extra tax burden

24th September 1976
Page 97
Page 97, 24th September 1976 — Extra tax burden
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Which of the following most accurately describes the problem?

Ian slammed by CM reporter THE National Freight Corporation, in a closely reasoned analysis, published this week, accepts that the public costs of roads and their administration should be recovered from road users through vehicle and fuel taxation.

The Corporation also agrees that taxation levels on individual vehicle classes should at least cover the costs which they cause.

In a paper, "Infrastructure Costs and Road User Taxation," the NFC supplements its main response to the Government's Consultation document.

The Corporation has reservations over the analysis in that document whereby a large part of road costs are allocated to vehicle categories but cannot be said to be caused by them.

Substantial changes in taxation without prior evaluation could lead to higher prices, says the NFC. All modes of transport should be treated in the same way if market forces were to influence how and by what means goods were to be moved. Therefore both road and rail freight should meet costs on a common basis.

Rail freight was apparently not to be charged with any of the joint track costs of the railways yet it was suggested that road freight should bear a supplementary tax burden. There was no justification for singling out road transport for this unnecessary burden.

The Corporation opposes any attempt to recover environmental costs through taxation of trucks. This would achieve nothing positive while increasing costs and prices. Much more effective would be the phased introduction of higher technical standards for operators and their vehicles, in conjuction with road improvements designed to separate through-traffic from communities.

Many forms of industrial activity were detrimental to the environment besides road traffic.

The NFC warns the Government that the use of vehicle and fuel taxation as a method of recouping community costs from road users would not reduce the community effects of road transport nor would nuisance be alleviated.

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