Hauliers call for 'pay as you go' road tax

The Government has today been urged to scrap road tax for heavy goods vehicles in favour of a 'pay as you go' charge for the entire national road network.

The proposal, part of the Irish Road Haulage Association's 2010 Pre-Budget Submission, is also aimed at generating tax revenue from foreign haulage operators using Irish roads, to protect jobs and prevent Irish road haulage companies from going out of business.

“This model works perfectly well in other European countries and the legal framework already exists to introduce it in Ireland. It is certainly more equitable than the current road tax regime,” explained IRHA president Vincent Caulfield.

The proposed tax operates by applying a tariff for day, weekly, one month or annual use of the national road network. Costs are based on the number of axles and European emissions standard of the vehicle.

Hauliers would receive a certificate for the tariff they choose, which could be purchased online, at ports of entry, filling stations and on board ferry-lines. Drivers using roads without one are subject to fines.

“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 12 months of the year,” said Mr. Caulfield.

“This is tying up working capital and strangling haulage companies

“The financial impact is compounded by the fact that foreign haulage companies are allowed to use Irish roads without paying anything to the exchequer, even though they regard having to pay road charges in other EU countries as part of the cost of running a business.”

The Association is also calling on the Government to permit licensed freight carriers to charge carbon tax on services in the same way as VAT, in recognition of the fact that the demand for transportation services and movement of freight is collectively generated by manufacturers, traders, distributors and consumers.

Its Pre-Budget Submission also urges the Government to address the need to differentiate between discretionary and non-discretionary users of fuel, calling for a reduction in fuel duty for commercial road users.