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Fuel taxes outweigh CO, costs

4th August 2005, Page 12
4th August 2005
Page 12
Page 12, 4th August 2005 — Fuel taxes outweigh CO, costs
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Which of the following most accurately describes the problem?

FUEL TAXES paid by the UK road transport sector exceed the environmental costs of its carbon dioxide (CO2) emissions by more than 250%, according to an environmental report.

The Climate Change and the UK RoadTransport Sector report says road transport is responsible for 26% of UK CO, emissions, while CO2 emissions account for some 75% of the environmental damage from pollution caused by UK vehicles.

The report also found HGV fuel taxes are roughly equivalent to their 'social costs' emissions, noise and accidents. Costs incurred through congestion are about twice as high as the damage costs of all HGV emissions.

The report looked at the CO, emissions from 11 transport companies, including Exel,TDG, Christian Salvesen and Wincanton. It states: "Following this logic, introducing a road user charge would allow fuel taxes to be reduced by 50% for HGVs rather than 100% as previously envisaged."

However, it continues: -[This] would be grossly discriminatory to the road haulage industry in the absence of similar levels of

fuel tax throughout Europe... Nevertheless, it is a strong argument in favour of adding road charging to the range of policy options rather than using it to completely replace fuel tax."

Vince Chayney, head of commercial development at Trucost, which compiled thereport, says: "VED covers the infrastructure costs Fuel tax covers external environmental impact it's directly proportional to fuel burnt.

"[But] congestion costs currently aren't being addressed. Road user charging is designed to reduce congestion."

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People: Vince Chayney

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