Plant market calls for end to equipment tax

Plant hirers and industry bodies are pressing the Government to scrap or at least delay a new tax on road construction equipment.

Plant operators and hirers are furious at the Government's failure to consult them on the tax and are seeking immediate action from ministers to prevent the proposals from going ahead.

Peter Lewis, chairman of Ashtead Group, one of the UK's largest plant hirers, said: 'This hike in taxes is likely to cost us œ3-4 million. Since our market share is around 9% the overall cost to the industry per annum could be as much as œ8 million. We want it revoked.'

The FCEC is leading the drive to delay the tax from July to January. The federation's Jim Turner says that delaying the tax will allow firms to prepare for it and price it into next year's maintenance contracts.

When the proposal is enforced, specialist equipment such as pavers, chippers and tyre sprayers could be subject to duty ranging from œ135 to œ5,000.

Hewden Stewart chairman Sir Matthew Goodwin said: 'This is a very large cost factor which will hit every construction company and could cost the industry millions. The Government should scrap the proposals.'