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Foreign lorry levy results in tax windfall

24 Oct 2014

A new levy on foreign HGV vehicles coming into the UK is likely to raise twice as much in tax revenues as initially expected, according to Treasury figures.

Foreign lorry companies have to pay anywhere between £1.70 and £10 a day to use UK roads, and failure to do so could result in a £300 roadside fine.

Since it was introduced in April the levy has made some £23.4m for the Treasury, which is already £3m more than it expected for the whole 2014/15 tax year.

Nearly one million levies have been bought so far, with the countries buying the most levies being Poland, Romania, Spain, Hungary and the Czech Republic.

The Treasury is not publishing details on whether the revenue raised will be spent specifically on road improvement. Nonetheless, the levy was widely welcomed by UK haulage companies, particularly as British lorries often have to pay equivalent taxes to drive on roads abroad, which their competitors can use for free.

Not all businesses are so positive about the tax however, with some commenters complaining that the costs of the levy are being passed on to UK exporters and consumers.