31 March 2023

CNR ISSUES STUDY ON ROAD TAXES AND CHARGES IN EUROPE

On 29 March, the Comité National Routier (CNR) – a French observatory on European road transport – published a report on a European overview of levies (road taxes and charges) specifically applied to heavy goods vehicles: vignettes and tolls, axle tax and excise duties applicable to diesel. These systems, which are very disparate, do not impact in the same way the cost of using road infrastructure and have incidence on the competitive relationship between countries and between carriers.

The study analysed the different tax and levies applied to HGVs in 25 countries (EU-27 excluding Malta, Cyprus and Greece, but including the UK). It shows that between the different systems existing in parallel for road charging (vignettes, road tolls), tolls are the single largest item affecting the cost of using road infrastructure, as the costs of vignettes is offset by the high number of kilometres travelled by HGVs operating internationally. With regards to direct taxes on trucks (axle tax), the numbers greatly vary between countries, but they represent only a small part of the overall cost, as they are offset by the high number of kilometres driven by hauliers.

The report also highlights that diesel taxation levels vary widely across Europe, despite the introduction of minimum tax rates for fuels in the Energy taxation Directive. Member States continue to adopt different strategies in this area, leading to international hauliers adopting strategies aimed at purchasing supplies where fuel prices are lowest. It should be remembered that fuel is generally the second largest cost item for hauliers and is actually the largest cost item for certain Eastern European haulage sectors, such as Poland.

But above all, the CNR notes that these most substantial discrepancies exist primarily between countries rather than between individual haulage companies: The real competitive problem is linked to the level of operating costs in different Member States.

Source: Comité National Routier