Logistics UK Urges Immediate 6p Cut in Fuel Duty to Alleviate Industry Burdens
Logistics UK is fervently advocating for a swift reduction of 6 pence per litre in fuel duty, a move that could potentially save hauliers a substantial £2,424 per 44-tonne truck annually. As fuel prices continue to rise, the business group is putting forward innovative solutions, such as adopting a system akin to Portugal’s, where the duty rate is adjusted weekly based on increased VAT revenue from fuel sales.
Escalating costs and pressures on businesses
The consequences of persistently high fuel prices are far-reaching, with the potential to drive up expenses for consumers and enterprises alike. Kate Jennings, Policy Director at Logistics UK, pointed out that diesel prices at the forecourt have surged by 34% since the year’s commencement. This dramatic increase in costs for haulage firms poses an unsustainable burden, particularly for businesses operating on razor-thin profit margins.
Jennings emphasised that haulage companies in the UK already face an extraordinary challenge, with fuel duty rates standing at a staggering 63.5% higher than the EU average. This places unprecedented pressure on logistics businesses that play a pivotal role in keeping the country supplied with essential goods.
Innovative taxation mechanism: A solution
Drawing inspiration from Portugal’s taxation system, Logistics UK proposes the introduction of a dynamic, price-related taxation mechanism. Such an approach ensures that fuel duty remains responsive to economic conditions and doesn’t exacerbate inflationary pressures faced by both consumers and businesses.
As the debate on fuel duty reduction gains momentum, Logistics UK continues to champion the cause of alleviating the financial strain on the haulage industry. By advocating for these measures, the organisation seeks to create a more sustainable and cost-effective future for businesses and consumers while maintaining the vital flow of goods throughout the UK.
Written by Mark Salisbury for Fleet Point © Monday, July 18, 2022. Keep up to date with the latest transport news with Fleet Point
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