Less tax abroad • According to the Federal Freight Transport
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Association (BDG), there are wide discrepancies in the various taxes paid by transport firms in different European countries. The UK has the most expensive road tax for 38-tonners, followed closely by West Germany and Denmark. Austria, Italy and France have very low rates of road tax — less than 10% of the British level. VAT on diesel varies from 9.3% in Switzerland to 25% in Belgium and Ireland. Corporation tax payable by transport companies ranges from below 30% to over 60% with Denmark having the highest rate.
Some governments also subsidise the purchase of new commercial vehicles. In Italy the subsidy may be as much as 75% of the price of new replacement vehicles and the Netherlands provides a triple subsidy for the purchase of trucks — a 12.5% investment premium, up to 6% investment supplement and around 3% for buying environmentally acceptable vehicles.
Other factors make some countries more economically viable than others for truck operators. In Denmark, there is no annual test for trucks for the first five years of use so that they may be driven more or less until the end of the depreciation period without any technical checks being made.
Verkers-Rundschau, August 30.