21-01-2008
Businesses call for fuel tax scrap
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Hundreds of businesses have called on the chancellor to scrap plans to raise fuel tax, according to reports.
A proposed 2p per litre rise in April is concerning many firms, with the haulage industry the most likely to be greatly affected by the duty rise.
In a letter to the chancellor, Alistair Darling, signed by businessmen and women, the potential difficulties faced by such firms were outlined.
"The new rise will only compound the problems, with many smaller hauliers likely to be the worst hit as they will find it difficult to pass on the extra cost to customers," the letter said.
In total, the letter estimated the impact of the 2p per litre tax rise on fuel would cost the haulage industry £170 million.
A spokesperson for the Treasury said that by 2010 main fuel duty rates will be 11 per cent lower in real terms than they were in 1999, even after the changes outlined by the chancellor over three years in last year's Budget.
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