Sarkozy's VAT Tax proposals are a "non-starter" says RHA

President Sarkozy's proposal that EU States should consider lowering the VAT rates on fuel was labelled a non-starter by the Road Haulage Association.

"Hauliers in particular recover VAT so any lowering of the rate is immaterial to the problems the industry faces in accommodating the ever rising cost of diesel fuel", said RHA Chief Executive Roger King.

"What would help would be the harmonisation of fuel duty within member states. That would mean a reduction in the UK to bring it more into line with the average levels currently levied throughout the rest of the EU. This would "solve" the problem of foreign trucks using UK roads, not paying for them and fuelled with cheaper diesel - thus giving them a very unfair disadvantage over UK operators."