€1bn shortfall after tax U-turn
Introduction of eco-tax on HGVs will be suspended, but the system still needs to be paid for
THE introduction of a tax on HGVs designed to get freight off the roads and on to rail and shipping has been delayed, the government has announced.
It comes following anti-tax protests in Brittany over the weekend and leaves the government with a €1bn hole in its accounts.
It still needs to pay the firm Ecomouv’ - which is in charge of levying the tax - and has already installed the 180 gates and computer systems needed to track the lorries as they use public roads.
The €650million setup and running costs were due to be paid in part via funds raised by the tax.
Breaking the contract, drawn up in 2011 under the Sarkozy government, would cost €800m, but the government is likely to pay the society anyway, despite the system not operating.
The total loss of revenue to the government over the course of a year could run to one billion euros, although no new date has been set for the start of the tax.
Ministers are due to meet with protest groups to discuss the tax, which was to be levied on all HGVs above 3.5 tonnes using main public roads in France.
Transport projects that were due to be funded by the tax are now also in jeopardy. Questions are already being raised about the financing of the recently-agreed high-speed rail line between Bordeaux and Toulouse.
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Brittany protests against eco tax
Photo: flickr /vincent desjardins
