Large Goods Vehicles: Excise Duties
The question
To ask the Secretary of State for Transport, whether reductions in Vehicle Excise Duty for heavy goods vehicles are passed on to consumers through lower (a) transport and (b) retail costs.
Answered by Keir Mather
Recognising the key role the road haulage sector plays in transporting goods across the UK and their disproportionate exposure to fuel costs, the government is introducing a 12-month holiday from Vehicle Excise Duty for the majority of heavy goods vehicles (HGVs). As a result, haulage operators will pay £1 at renewal, saving £600 for a typical heavy lorry. Alongside this, the government also announced that the temporary 5p per litre fuel duty cut will be extended until the end of the year.
Fuel costs make up a substantial proportion of HGV operating costs, and this action is designed to help prevent fuel price increases from the Iran war spreading through the economy and impacting consumers. This is one part of this government’s action to ease the cost of living and tackle inflation, including of food prices.
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