Haulage firms to urge government to scrap fuel duty increase
Date: 11 February 2008
Haulage representative groups are set to urge the government to scrap the proposed 2p per litre hike in fuel duty when they meet with the chancellor.
The Freight Transport Association (FTA) and Road Haulage Association (RHA) will try to convince Alistair Darling that he should not increase the tax further from April, as logistics companies are facing extreme cost pressures.
RHA chief executive Roger King told the BBC: "We don't think that the tuppence increase is necessary. For a 1p increase it costs the average haulier, with the average truck, £600 a year.
"It adds to the cost of the UK economy. We say - leave road transport alone. We are saying - don't go ahead, delay it if necessary until world oil prices come down."
Many freight companies are facing extreme financial burdens because of high fuel costs and competition from European haulage firms that can fill up with cheaper diesel on the continent.
The FTA's director of policy, James Hookham, said the haulage group was "frustrated by the government's tax policies". An increase in April would add to a 19 per cent increase in tax over the past 12 months.
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