Independent road transport operators are already having a tough time at present price levels. An EU directive up for approval will eliminate a vehicle tax based on engine capacity, but at the same time it will significantly push up taxes on diesel fuel.

The thought of diesel fuel that costs EUR 1.80 a litre is anathema to Iiro Lehtonen, the managing director of the Finnish Transport and Logistics SKAL, an organisation representing haulage entrepreneurs and transport businesses.

"Bringing taxes on petrol and diesel into sync would add around thirty cents to a litre of diesel. This means something like a 20 percent price rise and that is incredibly high. Even considering that the power capacity tax is eliminated, transport firms will see added expenses of around 300 million euros," says Lehtonen.

Put the brakes on

The EU Commission wants to see the directive in force by the start of next year. However, Finland's Finance Ministry considers it impossible that all EU countries will give their approval to the changes by then. Professional road transporters hope that Finland will put the brakes on the whole venture.

Road transport in Finland uses around a billion litres of diesel fuel every year. Operators have roughed out a proposal under which some of the tax on diesel fuel would be reimbursed against loads carried.

"For example, a three cent discount provided in this way would result in savings of 30 million euros. Pressure will be brought during government budget talks, ministers will be lobbied and along with the rest of business and industry, hopefully some positive results will be achieved," Iiro Lehtonen explains.

The Finnish government does not expect the EU directive to go through without compromise, and is already considering measures to ameliorate its effects on hauliers. One possibility is a tax rebate for truckers.