FTA: 'Don't even try'
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A WARNING SHOT has been fired across the Government's bows over rumours that it might increase dery tax in next month's Budget. .
Freight Transport Association director-general Garry Turvey has written to Treasury Minister Peter Brooks to reinforce the ETA's request for a 15 per cent cut in dery duty.
It believes such a cut would help bring British tax on goods vehicles closer to that in other European countries.
In his letter, Turvey says: "I am very concerned with the current suggestion that, as a result of falling oil prices, the Government might take opportunistic action in the forthcoming Budget and increase fuel duties to maintain levels of income broadly in line with the old prices."
He adds: "You do not need me to remind you of the severe effect on our economy of the massive escalation in oil prices in recent years.
"Falling prices now provide the means of partially redressing that situation and this advantage to British industry would be impeded if the Government were to decide to increase the level of duty on derv."
And he warns that, as other EEC states have no need to increase taxes to compensate for falling oil prices, a British dery Tax increase would only worsen an already unacceptable situation.
The ETA's letter follows a meeting last week between its officials and Treasury civil servants to discuss details of
• the FTA Budget shopping list. Road Haulage Association tnational chairman Bert Neely led a separate delegation to Treasury Financial Secretary John Moore last week to plead for a rethink of the plan to phase out first year capital allowances on April 1.
It wants this postponed for a year and a 25 per cent straight line writing down allowance.