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Healey gets tax cut plea
Page 6
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THE Road Haulage Association and Freight Transport Association, in a joint pre-Budget submission to the Chancellor of the Exchequer, have called for a reduction in the rate of duty on derv.
In a letter signed on behalf of the two organisations, RHA director-general George Newman says: "Up to 1977 it had been general practice to apply the same level of duty on petrol and derv, and over the years the RHA and FTA have been advised by successive governments that it would be unwise and difficult to differentiate between the two.
"At the time of last year's Budget it was apparently the Government's intention to continue this policy in that similar increases were put forward for both petrol and dery so that the new rate of duty would be 35p per gallon.
."The subsequent withdrawal in the Finance Act of the increase on petrol left two different rates of 30p per gallon for petrol and 35p per gallon for derv.
"The RHA and FTA feel that this imbalance is illogical and should be quickly rectified.
"The RHA and FTA would therefore urge the Chancellor to take the opportunity available of the 1978 Budget to resolve this problem. We are concerned that the present situation should not be allowed to continue and that the previous policy applied by many governments should be re-introduced.
"If, however, different levels of duty are to be retained then in order to encourage wider use of the more efficient diesel-engined vehicle a lower rate of duty should be applied on dery than on petrol."