Latvia, Markets and Companies, Transport

Valdis Trezins.

As reported, the government has supported amendments to the "Law on Motor Roads", which stipulate introduction of the so-called Eurovignette or road tax starting from January 1, 2009. Starting from next year, all freight trucks with a weight of over 12 tons will be subject to the road tax.

"Under the circumstances, yet another tax may become the last straw," said Trezins, adding that the more than 20,000 truck drivers would be affected by the new tax.

Trezins said that the association supports the idea of the tax, but introduction of the tax, currently scheduled for January 1, must be put off one or one-and-a-half years.

Latvijas auto hopes to meet with Prime Minister Ivars Godmanis (Latvia's First Party/Latvia's Way) and submit to the government its proposals for improving the situation.

At the meeting, truckers will also urge the government not to raise excise tax on fuel next year yet. Trezins admitted that this is a matter that has to be tackled at the European Union level, however, "the common policy may be changed, always," and the government could urge Brussels to alter the plan for raising the excise tax.

"If they [the government] do not do anything, which I doubt, protests could also be staged," said Trezins, adding that the protests is not a goal in and of itself, and that if protests are organized, they will be peaceful and organized.

Trezins also pointed to problems at the Latvian-Russian border that truckers have to face on a regular basis. "If a truck has to spend four days at the border, what kind of a business is that?" asked Trezins, adding that truck lines at the border are causing enormous losses for the trucking business.