Hauliers seek road tax abolition

Hauliers have asked the Government to scrap road tax for heavy goods vehicles, and replace it with a pay-as-you-go permit system for use of the State’s roads.

The move would allow hauliers to effectively ’tax’ their vehicles for a day, or a week at a time, but would offer savings for vehicles which are used only on a part time basis.

The hauliers have argued the move would not lose the Government money, as Northern and overseas registered vehicles would effectively be brought into the tax net.

According to a pre-Budget submission from the Irish Road Haulage Association many hauliers do not have enough work to keep lorries busy on a full time basis. Association president Vincent Caulfield said the economic downturn had left many haulage firms with only sporadic business, but to keep a lorry on the road the minimum taxation period was three months.

“Hauliers are currently paying €2,500 on average to tax one vehicle for a year even though they do not have sufficient work to put that vehicle on the road through the full twelve months of the year. This is tying up working capital and strangling haulage companies,” said Mr Caulfield.

Such schemes are already in place in Denmark, Belgium, Luxembourg, Sweden and the Netherlands and the association claimed the legal framework already exists to introduce it in Ireland.

Permitting schemes operate by applying a tariff for day, weekly, one month or annual use of the national road network. Costs are typically based on the number of axles and the Euro emissions standard of the vehicle. Hauliers receive a certificate for the tariff they choose. The certificates can be purchased on-line, at ports of entry, filling stations and on board ferry-lines. Drivers using roads without a permit are subject to fines.

Under the association’s plan the permit would encompass the cost of using the State’s toll motorways.

The association also called on the Government to permit licensed freight carriers to charge carbon tax on services, in much the same way as VAT. This would allow hauliers to pass on the cost of the levy, reflecting that the demand for goods was created by the end user, not the haulier.

Its pre-Budget submission also urges the Government to address the “urgent need” to differentiate between discretionary and non-discretionary users of fuel. It has called for a reduction in fuel duty for commercial road users.

It also wants to see the establishment of an incentive scheme which encourages haulage companies to purchase lower emission Euro V and Euro VI vehicles as a means of reducing the impact of road transport on the environment.