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West Germans launch foreign truck tax attack

2nd March 1989, Page 7
2nd March 1989
Page 7
Page 7, 2nd March 1989 — West Germans launch foreign truck tax attack
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Which of the following most accurately describes the problem?

• West Germany is almost certain to press ahead with its plan to charge foreign lorries for using its roads from 1 January 1990. The West German Transport Ministry and Finance Ministry has published a provisional list of annual fees, ranging up to £2,185 per vehicle. A lorry using German roads for one day will pay a 150th fraction of the fee.

The charges will bring in about 280 million a year over the proposed three-year period (Germany expects a panEuropean tax system to be agreed by 1993). This money will directly subsidise German hauliers.

Graham Eames, managing director of Hargrave International, is angered by the news. "The whole principle behind it is a disgrace. They are trying to make their industry more competitive in the wrong way. Efficiency and quality is the way ahead, not milking the opposition.

Martintrux transport mana ger Dave Salter believes Britain should impose a tit-for-tat tax. "UK freight agents will not be willing to pay an extra levy and so understandably will give the work to German hauliers. The charges will make us uncompetitive. We must respond." The DTp calls the levy "unhelpful and counter productive."

The Freight Transport Association also opposes the German move. "It flies in the face of all that 1992 represents. UK operators pay more tax than their German counterparts anyway. The trouble is that the Germans can turn round and criticise us for failing to fall into line on the weights issue," says the association.

The published rates are as follows: O Lorries and road trains with three axles — 3,000 DM (about £937).

O Lorries and road trains with four axles and up to a total weight of 28 tonnes — 2,000 DM (about £625).

O Lorries and road trains with four axles and a total weight of up to 32 tonnes —4,000 DM (about £1,250).

O Lorries and road trains with four axles and a total weight of over 32 tonnes plus lorries and road trains with five or more axles — 7,000 DM (about £2,185).