Jens says vehicle taxes exceed planned transport spending

Jens Garðar Helgason, an MP for the Independence Party, accused the government of collecting tens of billions of krónur more from vehicle owners than it plans to spend on transport, mbl.is reported.

Helgason estimated that taxes and fees on vehicle owners bring in 95 billion to 100 billion krónur a year, including value-added tax. By comparison, he said the transport plan provides for average annual spending of 72 billion krónur during its first period.

He said vehicle excise duties were expected to raise 16.6 billion krónur, the mileage charge 43.4 billion and vehicle taxes 15.5 billion, for a combined 75.5 billion. Including carbon taxes, a road safety fee and other charges would bring the total to 89 billion, he said. A further 1.8 billion krónur was expected from new road tolls collected through Göng og brú, an infrastructure company, bringing the total to just under 91 billion.

Adding value-added tax, Helgason put annual revenue at 95 billion to 100 billion krónur. That estimate did not include charges planned in connection with Better Transport in the capital region.

Helgason said vehicle taxes and fees had risen sharply in recent months. Government ministers and MPs had justified the increases by pointing to a backlog in transport infrastructure, he said.

He argued that the transport plan also covers aviation, ferries and coastal protection, not only roads, bridges and tunnels. “If this, Mr Speaker, is what it means to have a steady hand on the wheel, I would rather vote for Bjössi on the milk truck,” he said.