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| Tuesday, 30 November, 1999, 19:40 GMT Threat of increased bridge tolls
Motorists using the Severn bridges could face increased tolls because of legal moves by the European Commission. The commission has taken the government to the European Court of Justice in Luxembourg over its failure to apply VAT on road tolls. If the government loses the case, tolls would increase by 17.5% which could see the Severn crossing toll for cars rise from �4.20 to �4.93. The commission wants to harmonise VAT so that all member states pay similar taxes. It has told the European court that the UK Government is not fulfilling its obligation under community law. The Department of Transport argues that tolls should not be liable to VAT. However, the commission has a high success rate in cases of this type. The 5.2km second Severn Crossing was built at a cost of approximately �330m and completed in April 1996, with toll rises linked to stay in line with inflation. David Foice of Severn River Crossings said it was not a welcome development. "We would be very unhappy to see a further increase. Sadly, though, we would have to comply." RAC spokesman Edmund King added: "Motorists often do not have a choice. They have paid for these bridges many times over in tolls. They would see it as an additional tax. "It is a late windfall for the Chancellor." |
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