Irish reel after diesel tax blow
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ISH hauliers and industrialists are reeling inder the blow of a Ir15p (11.1p) increase in he tax on a gallon of diesel oil in last veek's Irish budget.
Finance Minister Gene Fitzgerald anlounced the increase on Thursday last veek, along with a similar increase in petrol ax and a Ir1Op (7.4p) increase in liquid peroleum gas duty for motor vehicles which N as intended to preserve the tax -elationship with diesel fuel.
It has brought immediate criticism from rish Road Haulage Association president John McQuaid, who said the effect on Liauliers would be "disastrous". He said his own ten-vehicle fleet would be faced with an additional IrE12,000 (8,880) fuel bill each year, and a four-vehicle operator would pay an extra 1r£6,000 (£4,440) a year.
An IRHA spokesman added that the budget would add about three per cent to operators' overall costs, and nine to ten per cent to fuel costs alone. The fuel cost in creases come on top of oil companies' own increases of around Ir8p (5.9p) a gallon.
In addition, operators are expecting a 25 per cent increase in post and phone charges in July, with the present 11118.41 (£13.62) quarterly rental of a business phone likely to rise to 1r£23 (£17.02). Letters already cost Ir15p (11.1p) to post.
Employers are also being asked for additional payments towards social welfare benefits and for a third instalment of corporation tax in this financial year.
Among those joining in the chorus of criticism against the increased fuel tax is the Marketing Institute of Ireland which described the move as "almost criminally profligate".
It said the increased distribution costs will have to be passed on to the consumer, which will result in further wage inflation and so disturb the country's competitiveness.