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;HA urges tax cuts )n wages and diesel

9th March 1979, Page 19
9th March 1979
Page 19
Page 19, 9th March 1979 — ;HA urges tax cuts )n wages and diesel
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Which of the following most accurately describes the problem?

Road Haulage Association has urged the Government to cut ax on dery in a pre-Budget package of recommendations.

nce the 1977 Budget, duty lerv at 35p per gallon is 5p ler than that on petrol. ; discrimination against diesel-engined vehicle is gical", since the diesel en! is more efficient, says le Association also points that since 85 per cent of nation's goods are carried -oad, the tax penalty is ..cted in the price of all ;tamer goods and is thereinflationary.

he RHA also asks the Incellor to avoid any her increase in the vehicle se duty for lorries, arguing lorries already pay their 1 track costs in full. Any h increase would hoist il prices still further, says third request is for the rernment to introduce le form of tax relief to en able road hauliers to purchase new vehicles more easily.

Evidence from the Price Commission showed that hauliers' revenues are often insufficient to finance the replacement of vehicles. This has led to operators keeping vehicles beyond their optimum life which in the long run pushes up operating costs.

Finally, the RHA throws its weight behind the Confederation of British Industry's plan to restructure the tax system in order to give more incentives to smaller firms, which is intended to stimulate innovation and risk-taking.

The RHA also goes along with the CBI's suggestion that higher-paid managers and skilled workers should be taxed less. This would make careers in the road haulage industry more attractive, says RHA. The RHA concluded its prebudget representations to the Government by adding that they are made "not only in the interest of the road haulage industry but also in support of the Government's antiinflation policy."