FTA: Scrap Diesel Duty Rise Until 2011

'Tax regime' must be changed, say truckers

By Oli S / Tuesday, 1 July 2008 / Loading comments

Diesel prices have sored

The Government has been told to scrap any rises in diesel duty until at least 2011. The Freight Transport Association has accused the UK Government of having an 'ultra-high tax regime', with diesel duty in the UK costing 50p per litre compared to the EU average of 25p a litre.

The association said that diesel prices have increased by almost 50% during the last twelve months putting many businesses at risk. If prices continue hauliers will not be able to move goods, said the FTA.

The association is now calling on Prime Minister Gordon Brown to scrap the proposed 2p per litre increase in diesel duty planned for October, together with similar increases planned for 2009 and 2010. FTA Director of Policy, James Hookham, said he acknowledged that the Government cannot control the world price of oil but is calling for it to re-think its policy on diesel duty.

'In the present cost environment, the Chancellor would be daft to impose the 2p duty increase, or the other increases planned for April 2009 and April 2010,' he said. 'The Freight Transport Association and the whole of UK industry calls on the Government to recognise these massive problems. To date, the Chancellor has done nothing to support industry apart from ‘postponing’ the 2p fuel duty increase from April until October this year. That is absolutely not good enough. He must certainly take early action to reduce diesel duty for industry – but in the mean time he must immediately announce the scrapping of the present proposals for duty increases this year, next year and the year after.’