Transport taxation not the solution, says FTA

Date: 22nd October 2008

The Treasury should think carefully before increasing transport taxation, the Freight Transport Association (FTA) has said.

With the pre-Budget statement looming, representatives at the organisation are concerned that the chancellor may look to road taxation in order to replenish government equity.

Chancellor Alistair Darling had previously opted against applying an extra 2p per litre on fuel duties, a decision which was welcomed by business start-ups.

The FTA chief executive, Theo de Pencier, said: "An increased tax burden through fuel duty … may seem to the chancellor like a quick fix for the government's financial problems, but the reality is that those costs will be felt by consumers."

Mr de Pencier added that the additional transport costs would ultimately be passed onto shoppers, who are also feeling the effects of the credit crunch.

Fuel duties are not the only present concern for business start-ups, with the first self-assessment tax return deadline at the end of this month.