Europe has always had higher fuel costs than in the United States. When they are concerned with the rising overhead cost of fuel while driving a truck, it is serious. There is concern for more trucking companies to close doors because the cost of fuel from a tax hike is pushing them out of business.
Simon Chapman, the Freight Transport Association chief economist, stated:
“Successive, above inflation tax hikes since 2009 mean the freight industry is shouldering a disproportionate burden,” he explained. “Many businesses hit hard by the recent recession will feel like they are on borrowed time.”
Simon feels that the freight industry was unjustifiably hit to hard and the economy will be hurt even worse.
The article, “Misery for the motorist as fuel costs rise again” on PressandJournal.co.uk, had concerns that the high fuel costs will hinder the economic growth that is needed right now to bring Europe back up to a more balanced financial era.
There was another article about the same concerns. ChoiceQuote.co.uk published an article also about the rise in fuel prices called “FTA: Fuel duty increases ill damage businesses”. The article feels that with the government increasing the fuel duty, this tax hike will hinder instead of help the economy.
All the articles have the same concern and that is that with the new tax hike, beginning on October 1, of this year, Truck Driving Companies in the freight industry are hit with an unfair burden that other industries do not have. They have the higher cost of fuel because of taxes. The outcome of higher costs mean small companies already at the brink of financial failure will surely fail at this time.
http://www.thefuelcardpeople.co.uk/fuelnews/800093921/Business%20fuel%20card/Fuel%20card%20news:%20Hauliers
http://www.pressandjournal.co.uk/Article.aspx/1943281
http://www.choicequote.co.uk/news/haulage/haulage_fta-fuel-duty-increases-will-damage-businesses.asp
