British forwarders welcome UK budget's fuel tax cut

THE British International Freight Association (BIFA) that represents freight forwarders in the UK has given a "cautious" welcome to the government's decision to abandon the proposed GBP0.05 per litre fuel duty hike planned for April and the implementation of an immediate GBP0.01 per litre cut on fuel taxes.


The comments come in response to an announcement by British finance minister George Osborne that the budget also intends to put in place a "fair fuel stabiliser" to remove some of the uncertainty and deliver some stability over fuel prices.


"We welcome the news that fuel duty on petrol and diesel is to be cut by one pence per litre, but note that the planned increase has not been cancelled, just postponed until 2012. So there is still work to be done. Our members are still paying almost double the duty that their European competitors face," said BIFA director general Peter Quantrill.


"Our members have been suffering because of ever-rising fuel costs, and duty increases, and I'm still not sure that yesterday's budget showed that those in government fully appreciate and value the essential role of the freight forwarding industry.


"However, the fact that the government has emphasised the need for stability, and clearly intends to consult before making any major tax changes, is very welcome during these difficult times for the British economy, and BIFA members," he said.


According to a report by London's Containerisation International, ongoing international fuel price increases have been putting many UK trucking companies "under severe financial stress" given that truckers already pay between GBP750 (US$1,202) and GBP1,000 to refuel a truck.
(Source:http://www.schednet.com)