UK Government Urged to Reform Fuel Taxes

June 18, 2010 Taxation in UK

PacLease-Kenworth medium duty hybrid at dockThe UK Government is being urged by the national logistics industry sector to consider reforms to the current fuel duty levels, road charging system and the decoupling of duty paid on diesel for commercial vehicles.

On June 17th the UK Freight Transport Association (FTA) released a statement concerning a meeting held on the same day with Justine Greening MP, the new UK Economic Secretary. According to Theo de Pencier, CEO of the FTA, the FTA has upheld an open and cooperative business relationship with several Government officials, and the “…meeting with the new Economic Secretary was very much in this spirit.” He added that the new Minister seemed receptive to the FTA’s views on “lorry road user charging, fuel tax and decoupling diesel duty for HGVs.”

At the meeting Theo de Pencier said that the UK freight and logistics industry has suffered irreparable damage from the Government’s decisions to instate continued above-inflation fuel duty rate increases. He also claimed that UK logistics fleet operators have been subjected to the highest fuel duty rates in the Europe, but have maintained the cleanest and “greenest” level of operations. Theo de Pencier stated that fleet operators deserve credit for their continued efforts, and a reform of fuel taxes would be an ideal start. Speaking on behalf of the FTA at the meeting, Theo de Pencier suggested the implementation of a new road user charge system, but maintained that the industry figures should be involved in its planning from the initial stages. He added that the FTA would also support extra taxes being levied on foreign truck operating in the UK.

Regarding the reform proposition, Theo de Pencier, claimed that, “…to get the most out of a potential lorry road user scheme, engagement with industry is not only recommended but essential to securing a solution that delivers the greatest benefits.” He concluded by saying that the FTA is looking forward to working with the Treasury, along with the Transport and Economic Ministers to create a fuel tax solution that is mutually beneficial.
Photo by TruckPR