The French government has announced that it is suspending plans indefinitely for an HGV transit tax after several of the country's road haulage associations threatened industrial action from next week.
In a statement, the Ministry of Transport said ministers had met with representatives of hauliers' trade bodies this morning, which had convinced the government of the difficulties entailed in introducing the tax, including during its experimental phase.
Ahead of the meeting with ministers, one road haulage chief, speaking in a TV interview, said that firms were having to accept margins as low as 1% and if the truck levy was adopted it would put 20% of them out of business in his region. The French government has pledged to intensify the search for solutions to make the country's road haulage industry more competitive thus preserving firms and jobs.