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Any road charging policy must avoid double taxation, Logistics UK says
In response to a recent report on vehicle taxation reform, Logistics UK has reiterated that any road charging policy coming down the track must avoid the pitfall of taxing operators twice.
The report – Pay-as-you-drive: the British public’s views on vehicle taxation reform – was published by Campaign for Better Transport (CBT) last Thursday (29 September 2022).
Many experts and policy makers agree distance-based road pricing, or pay-as-you-drive, would be required for vehicle taxation to keep pace with the move to net zero. While much has been written about how it could work, the public’s views on this issue have not been tested for some time. Based on focus group research and polling 3,000 people, CBT claims that this report represents the most in-depth recent analysis of public views on road pricing.
“We welcome this report on what is an important subject,” said Kate Jennings, Director of Policy, Logistics UK, “Change is coming, and it is imperative that any road charging policy must be developed in close consultation with the logistics sector to ensure fairness and transparency between government and business.”
The report suggests a national pay-as-you-drive scheme could progress from a pilot flat per-mile charge for EVs to replacing Fuel Duty and Vehicle Excise Duty with a smart charge variable by vehicle emissions and where and when the journey takes place.
Jennings issued a stark warning to policy makers, however: “Logistics businesses already operate on extremely narrow margins, so any system must be applied to all vehicles and phased in carefully for the avoidance of double taxation. Logistics UK stands ready to work with government to develop a system which is simple, effective and transparent for all parties.”
*www.logistics.org.uk/fuel
Published On: 06/10/2022 15:50:57
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