Thursday, 15 August 2013

A tale of two taxes

France and the UK have both introduced taxes on HGVs which comply with EU requirements – but they are very different in the effect they are likely to have.

The French eco-tax is charged per kilometre and therefore designed to reduce the amount of freight carried by road and encourage rail, sea and river freight.

The UK HGV charge is charged by unit of time: by day, week, month or year. It will therefore have no effect on the distance freight is carried by road.

The income from the French eco-tax will be used for green infrastructure projects to protect the environment and promote sustainable development.

The UK tax take will be used to repair roads thereby encouraging more road traffic.

Need I say more?

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