1st February 2008
Business groups launch fuel duty campaign
The government's plans to raise fuel duty by 2p a litre in April are being challenged by a new campaign.
The Freight Transport Association (FTA) and the the Forum of Private Business (FPB) are jointly appealing for the level of duty to be frozen, to protect small businesses that rely on freight transport for delivery from suppliers.
The organisations says that they are looking for long-term solutions, as fuel prices remain particularly exposed to global shifts in the economy and the volatile oil market.
The British Chambers of Commerce (BBC) recently estimated that an extra 2p on fuel duty could cost UK haulage businesses as much as £170 million.
The new campaign also highlights the higher rate of VAT paid by UK small firms, compared to their mainland Europe competitors.
"Government should learn from its previous experience of fuel protests and blockades," said FPB speaker Phil McCabe.
"Many smaller firms were hit hard and it is not a situation we would like to see happen again."
The FTA is calling for a new system of taxation that would separate VAT on diesel for commercial vehicles from the fuel duty on private cars. This, it argues, would allow targeted rebates to protect small firms from national duty increases.
Geoff Dossetter, the FTA's director of external affairs, said: "It is crazy that, after so many years, we still operate the same tax scheme for charging duty on fuel for all road vehicles.
"In 2008 the fuel bill for a single 40 tonne articulated lorry is over £37,000. Commercial vehicles should certainly pay their cost to the roads system but taxation to this extent amounts to a bill for operation and it is not acceptable," he added.
The Freight Transport Association (FTA) and the the Forum of Private Business (FPB) are jointly appealing for the level of duty to be frozen, to protect small businesses that rely on freight transport for delivery from suppliers.
The organisations says that they are looking for long-term solutions, as fuel prices remain particularly exposed to global shifts in the economy and the volatile oil market.
The British Chambers of Commerce (BBC) recently estimated that an extra 2p on fuel duty could cost UK haulage businesses as much as £170 million.
The new campaign also highlights the higher rate of VAT paid by UK small firms, compared to their mainland Europe competitors.
"Government should learn from its previous experience of fuel protests and blockades," said FPB speaker Phil McCabe.
"Many smaller firms were hit hard and it is not a situation we would like to see happen again."
The FTA is calling for a new system of taxation that would separate VAT on diesel for commercial vehicles from the fuel duty on private cars. This, it argues, would allow targeted rebates to protect small firms from national duty increases.
Geoff Dossetter, the FTA's director of external affairs, said: "It is crazy that, after so many years, we still operate the same tax scheme for charging duty on fuel for all road vehicles.
"In 2008 the fuel bill for a single 40 tonne articulated lorry is over £37,000. Commercial vehicles should certainly pay their cost to the roads system but taxation to this extent amounts to a bill for operation and it is not acceptable," he added.
- 5th January 2009 Businesses urged to make redundancies 'last resort'
- 5th January 2009 'Cut interest rate to 1%' says business group
- 2nd January 2009 Gloomier forecast from business group
Delicious
Digg
reddit
Facebook
StumbleUpon