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Costs of road wear may Justify high tax

6th July 2000, Page 8
6th July 2000
Page 8
Page 8, 6th July 2000 — Costs of road wear may Justify high tax
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Which of the following most accurately describes the problem?

by Guy Sheppard The government has published research which it could use to justify the tax burden inflicted on the haulage industry.

A new report, commissioned by the government. claims that haulage is costing the country far more than has been thought. It indicates that the track costs of a year-old six-axle 40/41-tonner doing an average mileage are 116,500 a year. For trucks between 3,5-7.5 tonnes the figure is £1,479.

Track costs cover everything from building the road network to maintaining, sweeping and lighting it.

The published figures do not include environmental costs based on such factors as health damage caused by air pollution and depreciation in property values caused by

noise pollution. These extra costs are estimated at £7,000 a year for a 40/41-tanner and £1,671 for a 3.5-7.5-tonner.

The Department of Transport describes the study as one of the most advanced pieces of research on road-wear costs ever carried out in the EU''.

It says the report will be used to support the Chancellor's review of goods vehicle taxation, and to help establish principles for road charging in the EU.

John Dodgson is director of National Economic Research Associates which led the consortium of economic and environmental consultants behind the report. He says it will be one of several factors taken into account in the taxation review.

think it should contribute to the debate," Dodgson adds. "It puts the costs significantly higher than originally thought." But he accepts that the research does not cover the revenue the government receives from vehicle fuel and excise duties.


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