RHA rejects Brussels threat to HGV levy
The Road Haulage Association has strongly criticised the European Commission's decision to challenge the legality of the HGV road user levy, introduced two years ago.
Commenting, RHA chief executive Richard Burnett said: 'This challenge is nonsense. The levy breaks neither the letter nor spirit of EU law. Brussels was fully briefed during its design and implementation - and continental hauliers continue to pay the levy without complaint.
“This is an important and successful measure that addresses an issue of real concern; to both the haulage industry and wider public. Foreign operators - now account for almost 90 percent of international trade - paid nothing at all to use our roads and the full burden of contributing towards road maintenance fell on UK-registered trucks. The levy changed that, within a framework designed by the EU itself.
“It is important to recognise that foreign and UK hauliers both pay the levy. Visiting hauliers pay around £40 million a year, still a modest sum and made up of a £10 per day charge for occasional visitors or a cost saving option of £1,000 a year for frequent visitors.”
When the levy was brought in two years ago, UK hauliers had their vehicle excise duty rate reduced by roughly the corresponding amount. Before this, the full burden of contributing towards road maintenance fell on UK trucks and foreign hauliers paid nothing.
The commission’s report talks about 'thorough analysis' but refers to nothing new. In challenging the reduction of VED, it appears to be challenging the long-established principle that member states may set taxes rates within EU tax rules.
Concluding, Richard Burnett said: “Currently, the levy goes as far as EU law allows towards levelling the playing field and no further. The Commission should applaud the measure for making the haulage sector fairer, not attack it. If it persists in its challenge I trust that the UK government will pursue a vigorous defence.”
