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EC bans German tax

28th May 1992, Page 7
28th May 1992
Page 7
Page 7, 28th May 1992 — EC bans German tax
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Which of the following most accurately describes the problem?

I/ EC judges have stopped Germany slapping a hefty tax on UK and other foreign operators using its roads.

Hauliers faced annual charges of 9,000DM (£3,000) for a 38tonner on the German autobahn and main road network. The German government had already printed thousands of day, week, month and annual permits for sale to transport firms this summer.

Legal objections were lodged with the EC Court of Justice by the EC Commission and four governments. Germany is des perate to impose charges on foreign road users to help meet a £100bn bill to built up its infrastructure, especially in the former East Germany.

However, the judges, who adjudicate on conflicts between EC states on Community law, ruled that any changes to German transport pricing policy must be part of a common agreement by EC ministers.

Germany already has problems with persuading its own hauliers to accept higher VED and dery duty in order to pay for road improvements.