Tuesday, September 1, 2009

FTA Condemns Fuel Tax Rise

‘Companies simply cannot afford to carry on’
Shipping News Feature

UK – Representatives of the UK freight industry have very vocally attacked the British governments increase on fuel tax which came into effect last night. With an extra 2.3p / litre on petrol and diesel the average cost across the UK for diesel is 108p per litre / £4.90 per gallon.

Speaking in an interview with the BBC the FTA’s director of communications Jo Tanner pointed out that this was the third rise in fuel duty since December last year and that the number of insolvencies in the logistics sector was up by 50%.

Ms. Tanner went on to say that: “For many [freight] companies this could be the end of the road.

“We’ve got the combination of the recession, these fuel duty increases and companies simply cannot afford to carry on.”

She also described the government’s statement that the tax was for environmental concerns as ‘green wash’, stating that:

“We’ve made huge inroads into carbon emission and into other noxious emissions. We have actually led the way, much more so than the car industry and yet we’re the ones who are punished time after time.”

In addition to this rise the Petrol Retailers Association has pointed out that the price of fuel would increase again when the planned return in the VAT rate from 15% to 17.5 % takes affect at the end of the year.