Change Duty increase to VAT increase, says RHA

The announcement in the budget of an additional 2 pence per litre fuel duty increase in September has been roundly condemned by the Road Haulage Association.

“This flies in the face of the EU desire to harmonise fuel duty for road transport”, said RHA Chief Executive Roger King.

“The UK soars above every other country with this 2 pence per litre increase which means that duty will have gone up by 11 per cent over a nine month period. Foreign hauliers coming into the UK must be rubbing their hands with glee”.

The RHA has written to Exchequer Secretary Angela Eagle asking that the 2 ppl be changed into an equivalent increase VAT rate so that hauliers can claim back the increase.

“With VAT rates for fuel varying all over the EU (Denmark has a 25 per cent rate for example), we see no reason why Government cannot extract extra revenue from road users whilst rebating those who provide an essential service such as Britain’s hauliers,” continued Roger King.

“Indeed, we would recommend that all the recent duty increases be changed into an enhanced VAT rate of, say, 25 per cent so that real progress can be made on cutting fuel costs for vital transport industries and thus promoting UK industrial efficiency”.