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| Fuel duty hike pays for lost VAT |
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| Written by Vascoingles | |
| Monday, 01 December 2008 | |
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Two of the leading road transport groups responded angrily to news that fuel duty would increase 1.84p (US$0.28) per litre, as a means of recovering the cost of reducing VAT by 2.5%. Road Haulage Association (RHA) CEO Roger King called it "a smack in the teeth" for hauliers. "This is outrageous, " he said. "This represents not only a smack in the teeth for UK hauliers, but challenges the conclusion of Westminster's own select committee." RHA national chairman Andy Boyle added: "I am absolutely livid. If things were not bad enough, it now seems that we have a chancellor who does not understand his own tax system." The Freight Transport Association (FTA) backed up this view and condemened the move as "cynical" and a deliberate targeting of the sector. James Hookham, the FTA's director of policy, said: "The chancellor's statement held few warm words for the logistics industry, but this 'fuel duty snatch-back' shows that the devil is in the detail." The chancellor confirmed a further increase in fuel duty of 1.84p per litre in April 2009 and remained silent on the planned reintroduction of the fuel duty escalator from April 2010. Source IFW |
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