Govt sticks to tax plans
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THE GO V ERN M E I has successfully resisted Labour MPs' attempts to cut the proposed increases in vehicle excise duty on buses, coaches and taxis.
At the start of the committee stage of the Finance Bill, Labour MPs suggested cutting the increase in vehicle excise duty from 11.1 per cent to five per cent and that the extra tax paid for every seat on a coach or bus over 20 passengers should be cut from the present 90p to 50p instead of the Government's proposed increase to O.
Opposition spokesman Terry Davis said their proposals would cut the tax on coaches from 04.70 to £64, against the Government's proposals to increase it to £83.
On the question of buses, Labour wanted to cut the tax from £83 to 03.50 instead of an increase to £102.
Mr Davis said there was a strong case for reducing the fixed cost of running a coach or bus as a gesture towards the increasing costs of public transport.
Treasury Minister Barney Hayhoe said the Government wanted to increase the ved on taxis and coaches and buses by the same percentage as on other vehicles.
He appreciated Mr Davis's reasoning but he pointed out that buses and coaches were alone among vehicles in not meeting their full road track costs.