13 Aug 2009

Diesel tax rejection pleases farmers

12:57 pm on 13 August 2009

Farmers are applauding the Government's decision to can a proposed diesel tax but the move has upset truck drivers and the Automobile Association.

The Government has accepted most of the recommendations from an independent review of road user charges.

But it has rejected the idea of replacing the current system with a tax on diesel.

Federated Farmers says that decision is the right one.

Its transport spokesperson Donald Aubrey says a diesel tax would have required a refund system for off-road use which would have added a major compliance burden on the agricultural sector.

The Automobile Association sees the decision as favouring off-road diesel users such as farmers, at the expense of the majority of users who account for almost two third of diesel sales.

The Road Transport Forum, which represents truck operators, says the current system has high compliance and administration costs and if it is here to stay it needs to be improved.