Heavy Goods Vehicles (Road Tax) (Hansard, 18 December 1996)

§ Mr. Bowis

In the United Kingdom, goods vehicles pay vehicle excise duty according to their revenue weight and their axle configuration. The following table summarises the main features of current rates after the Budget of 26 November 1996. In the Budget, the Chancellor also announced his intention to offer concessions to heavy goods vehicles with low emission levels meeting targets from 1988. Full details of rates are published by the Driver and Vehicle Licensing Agency on form V149 "Rates of Vehicle Excise Duty" available at post offices.

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Goods vehicle type	Revenue weight details	Current annual fee £
All types	Over 3,500 kgs not over 7,500 kgs	150
All types	Over 7,500 kgs not over 12,000 kgs	290
Rigid vehicles:
2 axle	Minimum: Over 12,000 kgs not over 13,000 kgs	450
	Maximum: Over 1,500 kgs not over 17,000 kgs	1,280
3 axle	Minimum: Over 1,2000 kgs not over 17,000 kgs	470
	Maximum: Over 25,000 kgs not over 27,000 kgs	2,260
4 or more axle	Minimum: Over 12,000 kgs not over 21,000 kgs	340
	Maximum: Over 31,000 kgs not over 32,000 kgs	4,250
Articulated vehicles
2 axle tractor	Minimum: Over 12,000 kgs not over 16,000 kgs	440
1 (or more) axle trailer	Maximum: Over 33,000 kgs not over 38,000 kgs	5,000
2 axle tractor	Minimum: Over 12,000 kgs not over 28,000 kgs	440
3 axle trailer	Maximum: Over 36,000 kgs not over 38,000 kgs	3,100
3 axle tractor	Minimum: Over 12,000 kgs not over 23,000 kgs	440
1 (or more) axle trailer	Maximum: Over 36,000 kgs not over 38,000 kgs	2,730
3 axle tractor	Minimum: Over 12,000 kgs not over 33,000 kgs	440
3 axle trailer	Maximum: Over 36,000 kgs not over 38,000 kgs	1,240

In France, goods vehicles not over 16 tonnes pay road tax as part of the graduated system that applies to ordinary motorcars. The tariff depends upon the power of the vehicle, its age and the area of the country or departement. Typically, vehicles in the lowest power bands pay FF200 to FF300, those in the highest power bands FF12,000 to FF14,000.

Vehicles with a total permissible weight in excess of 16 tonnes are exempted from this graduated tax, but instead pay axle tax. The tariff is based upon both axle configuration and gross weight, and ranges from FF200 to FF14,400 per year, although vehicles may qualify for certain reductions in these rates depending upon how they are used and operated. An articulated vehicle with two-axle tractor, two-axle trailer and weighing between 37,501 kg to 38,000 kg would pay FF5,200.

In Germany, taxes are based upon total permissible weight in kilogrammes. Standard rates for 1995 range from DM22 per 200 kg, for vehicles not over 2,000 kg, to DM124 per 200 kg for vehicles over 15,000 kg, up to a maximum of DM3,500. Vehicles meeting specified noise and pollution standards qualify for lower rates, which for the most environmentally friendly vehicles range from DM12.55 per 200 kg, for vehicles not over 2,000 kg, to DM30.85 per 200 kg for vehicles over 15,000 kg, up to a maximum of DM1,300. Trailers are surcharged according to total maximum weight, ranging from DM730 for those not exceeding 10 tonnes, to DM1,750 to those over 18 tonnes. Under those arrangements, a 38,000 kg articulated vehicle without environmental improvements would pay DM3,500.

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In Belgium, vans, trucks, lorries and articulated goods vehicles pay road tax based upon the deadweight of the vehicle. The following rates were applicable between July 1995 and June 1996. Up to 1,000 kg deadweight, the basic charge is 150 Belgian francs per 100 kg, subject to a minimum tax of 888 Belgian francs. Over 1,000 kg deadweight, vehicles pay at a rate per 100 kg of 150 Belgian francs plus seven francs for every 100 kg over 1,000 kg, subject to a maximum rate of 346 francs per 100 kg.

At deadweight 4,650 kg tax payable is 15,916 Belgium francs. Over 4,640 kg, a supplement of 346 francs is payable for each additional 100 kg. Some vehicles may be subject to additional municipal taxes. A reduction of 25 per cent. is permitted to vehicles over five years of age. A 38-tonne articulated vehicle, assumed to have deadweight of approximately 13 tonnes, would pay roughly 46,500 francs.