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UK To Fight EC's Diesel Tax Plans

by Ulrika Lomas, Tax-News.com, Brussels

26 July 2002

It was confirmed on Wednesday that the UK Government will be contesting European Commission plans to harmonise excise duty on diesel fuel.

Speaking earlier this week, EU Internal Market Commissioner, Frits Bolkestein called for a harmonised rate of 350 euros per 1,000 litres in order to reduce unfair competition between the national road haulage industries of member states.

However, the UK government levies higher excise duties on commercial diesel than any other EU member state, receiving some £12 billion per year, and is therefore vehemently opposed to the plans to impose a single - lower - rate across Europe.

Speaking to the Guardian this week, an unnamed government spokesman explained that: 'It remains our view that tax policy is the sole responsibility of the member states.'

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