Excise Tax

Excise Tax

Amendments to excise tax legislation in 2016 increased operating costs for commercial carriers. As a member of the Canadian Trucking Alliance, the Saskatchewan Trucking Association is still advocating hard to undo the changes and return dollars to companies who are now paying tax on fuel for TCUs, PTOs and ATU.

STA Carriers were Called to Action on this change and were involved in a national letter writing campaign. The Call to Action was as below:

The 2016 Federal Budget included a motion to eliminate the ability of carriers to claim Federal Excise Tax (FET) refunds on diesel fuel used to power TCU’s, APUs and PTOs.

 The Saskatchewan Trucking Association and the Canadian Trucking Alliance are both opposed to this move but after many meetings it appears the Minister of Finance is moving forward with the motion anyhow.  With that said, this is by no means the end of our fight on this issue.  According to the Canadian Trucking Alliance,  if the Minister introduces the bill the way it is there is still the ability for him to direct the Canada Revenue Agency to implement a written policy whereby it would exclude the application of FET to diesel used in TCUs, PTOs, and APUs.  Although this situation is not the best one it will still allow for FET refunds to continue.

 Multiple carrier STA Members were included in the letter writing campaign. In February of 2017, the CTA Excise Tax Campaign Captures Attention of Dissenting Members of Federal Finance Committee. The House of Commons Standing Committee on Finance issued its 145-page report on the pre-budget consultation process. Although the Canadian Trucking Alliance’s (CTA) request to restore federal excise tax refunds did not make the list of recommended items in that report, it was mentioned as part of the official opposition’s dissenting report to the Finance Committee.

Among its own recommendations on taxes, spending, and job creation, the dissenting opinion reflected part of CTA’s submission by calling on for the federal government to “restore the excise tax exemption for diesel fuel used by anti-idling devices.”

CTA VP Stephen Laskowski welcomed the report’s recognition that taxing the fuel required to run these environmental devices makes for an inconsistent tax policy.

“This is a good start to our campaign designed to raise awareness in Ottawa of the need to restore our sector’s ability to claim federal excise tax refunds used for anti-idling devices that help keep drivers warm and cool in their living spaces while on the road,” said Laskowski. “However, it’s equally important the government also restores exemptions for fuel used to control the temperature of precious goods and pharmaceutical cargo as well as operate power-takeoff units.”

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