'Cut derv' says FTA
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A CUT in dery tax is high on the Freight Transport Association's shopping list to Chancellor of the Exchequer Nigel Lawson for his first Budget next month.
The FTA has called for more recognition of the role transport can play in helping speed Britain's economic recovery, and wants action on tax on dery and vehicle excise duty.
It wants not only the tax differential in favour of dery to be preserved (it stands now at 63p plus vat), but for it to be widened "consistent with the overriding belief that freight transport should be taxed as an essential business function and not an optional activity."
The FTA believes a cut in dery tax would be the "quickest, ea siest and most effective" means of reducing the overall burden of tax on industry this year.
It has repeated its demand that there should be a reassess ment of the means of calculat ing track costs for vehicle excise duty, and of the rate itself, as this year on its calculations, the heaviest lorries are paying £46m more than is justified.
This, the FTA has told Mr Lawson, was borne out by last year's revised track cost formula, and it added: "It must be underlined that this is not an isolated mis take, but an over-assessment which has existed for more than 15 years."
It has asked for immediate action on this front, and wants the Chancellor to begin to compen sate some of the tax injustices by rectifying "without delay" the £1,190 overpayment which the revised track costs formula shows 38 tonne lorry owners make each year.
• The Confederation of British Industry's detailed submission to Mr Lawson calls for a widening of the tax system to help employees buy shares in their companies.
The measures, which would help create more buy-outs along the lines of National Freight, are aimed at improving employers' attitudes towards enterprise. As well as improving capital taxation, abolishing the investment income surcharge and abolishing stamp duty on equity transactions, it wants a longer term commitment to extending tax advantages available on savings to cover savings directly invested in equities.
• Government promises, p5