The international parcel delivery expert ParcelHero says the cut in the UK Government’s planned draconian tariff of 22% on new EU-built trucks to 10% shows it has failed to consider the issue properly; and should now announce it will scrap the tax completely.
If this doesn’t happen, warns ParcelHero’s Head of Consumer Research, David Jinks MILT, the new 10% tariff will stall the introduction of new greener EURO 6 phase D engines, made compulsory from last month, and will mean significantly increased costs for delivery and logistics industry companies – costs that will ultimately be transferred to customers.
‘The Government’s haphazard approach to no-deal tariffs has been highlighted by its partial climb-down on stringent new duties on EU-built trucks. But even the latest 10% duty – reduced before it was ever implemented – increases the cost of a new truck by £8,500 on a typical £85,000 vehicle. Truck operators such as international couriers and road hauliers usually replace aging trucks in batches, leading to a huge potential price increase of at least £170,000 on an order of 20 trucks. Obviously, that’s an unexpected cost that will have to be paid for somehow.’
‘The new Brexit truck duty couldn’t come at a worse time. Just last month the latest EURO 6 phase D engines were introduced, representing a significantly greener step forward. The new engines are more efficient in low speed urban environments and cold-start emissions are also substantially reduced. Operators are certainly likely to put on hold their orders for the latest Renault and. Volvo Euro 6 D trucks while this latest duty disaster is sorted out. ‘
‘The whole logistics industry will be impacted by this new vehicle tariff, from international couriers using trucks to ship to local distribution centres and airports, to heavy hauliers. Replacing older trucks is a massive investment for all logistics companies, and any delay in replacing less efficient vehicles will only add to UK pollution levels and transport costs. Even British-built DAF trucks are likely to suffer following a no-deal Brexit, as they will face 22% tariffs in their key EU market.’
For more information on how unfolding Brexit plans are putting increasing pressure on UK businesses see: https://www.parcelhero.com/blog/expert-shipping-advice/study-will-brexit-resolution-whatever-its-shape-bring-dividends-or-disaster
Photo Credit: Courtesy ParcelHero/Copyright iStock