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Different Fuel Tax Policies and their Effects |
| Date Added: August 12, 2011 09:12:40 AM |
| Author: adamjoony |
| Category: Science and Technology |
| Many European countries like UK, France and Germany who are basically dependent on imported fossil fuels also use this fuel tax for the purpose of reducing use of fossil fuels, reducing pollution and reducing traffic. By applying a motor fuel tax on the population governments not only derive income they also effectively help to promote non-fossil fuel alternatives, like electric batteries, that would otherwise be prohibitively costly.Every country has different Fuel Tax rates and thus sometimes people can take advantage of lower fuel tax rate of a neighbouring country. There are many noticeable examples of this especially in Europe where borders are effectively open to holders of an EU visa. Sometimes drivers just cross borders to fill their fuel tanks then return. Luxembourg has intentionally kept lower fuel tax rates in order to generate more revenue by attracting cross border filling up of fuel. This practice is largely used in the transportation business and explains why there is often a series of gas stations at the edge of state borders. Some countries have tried to put cap on this practice by employing different policies, for instance, Singapore does not charge any fuel tax on fuel tanks but always check foreign vehicle’s fuel tanks and it requires they are at least 75% full; Argentina has a different fuel tax for fuel supplied to foreign vehicles. Diesel use has overtaken petrol use in UK and thus UK has imposed extra fuel tax on diesel. But this led to the situation where the diesel fuel price in Luxembourg is 30% cheaper then price in UK. This is one of the reasons that there are so many truck movements, above 3 million, from Europe to UK. Hauliers / Truck manufacturers with use of technology now use / make vehicles with large fuel tanks e.g. 1500 litre capacity. This enables hauliers etc to save a significant amount of money by filling up where fuel is cheaper and is something of a warning signal for UK fuel Tax Policy as foreign trucks do not pay vehicle exercise duty nor vat on fuel.Dr Austen Jones is the owner of Driving-Distances.com that uses distance calculatordata from postcode.org.uk. As such the business delivers operational efficiencies offered by technology in its many different guises e.g. by providing cost effective fare quoter solutions to taxi businesses and couriers as well. He is a Chartered Engineer (C.Eng) and has an M.Eng in Manufacturing & Management; a PhD in planning and scheduling system implementation and an M.Res degree in business performance improvement techniques. Austen has project managed the development and implementation of a supply chain management system in a medium-sized company as well as specified and implemented numerous bespoke solutions in a wide range of transport-related businesses throughout the UK. |
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