Canadian Trucking Alliance

Canadian Trucking Alliance

September 09, 2008 13:53 ET

Trucking Alliance Says PM's Commitment to Cut Diesel Fuel Excise Tax an Important Economic Step

OTTAWA, ONTARIO--(Marketwire - Sept. 9, 2008) - David Bradley, CEO of the Canadian Trucking Alliance says today's announcement by Prime Minister Stephen Harper that if re-elected he will cut the four cent per litre federal excise tax on diesel fuel in half is the right thing to do.

"Excise taxes on business inputs are an archaic and regressive form of taxation that should have been repealed or reformed back when the GST was introduced," he said. "It's taken a long time, but finally someone is listening." CTA has tirelessly argued that the taxation of commercial fuel through excise taxes is plain, bad tax policy.

According to Bradley, the trucking industry has been reeling from sky-rocketing diesel fuel prices. "Over the past year, the cost of diesel fuel has overtaken labour as the number one operating cost for many if not most truck fleets," he said. "Not only has this had an enormous impact on the viability of truckers. Every penny counts in this market." In addition, with transportation representing a component of the final cost of all goods sold - the old adage if you got it, a truck brought it is as relevant today as it ever was - Bradley said that "all other things being equal the tax repeal could provide modest help in to lessening some of the upward pressure on the price consumer goods, foodstuffs and business inputs."

"A two cent per litre reduction in the excise tax will not solve all our problems but it would be an important step in the right direction," he says. Tractor-trailers consume about 7 billion litres of diesel fuel per year in Canada, so today's announcement would save the industry about $140 million in tax. A typical long-haul trucker who travels about 200,000 kilometres per year and consumes about 80,000 to 90,000 litres of diesel fuel will save about $1,600 to $1,800 per year.

Bradley is hopeful that the remaining two cents per litre in excise tax would eventually be repealed or at the very least used to help accelerate the penetration of new smog-free truck engines and fuel efficiency devices into the marketplace. "The trucking industry has a plan, enviroTruck, which if implemented would eliminate air contaminants from trucking sources and would reduce GHG emissions by the equivalent of getting 2.6 million cars or 64,000 heavy trucks off the road."

"But today's announcement is an important first step and it would be helpful in beginning to address some of the extreme economic pressure that the industry is under."

The excise tax on diesel fuel was first introduced in Canada in the mid-1980's for the expressed purpose of raising cash to help the federal government cope with the enormous fiscal deficits that prevailed at that time. While there was general agreement that excise taxes were inconsistent with value-added taxation as represented by the GST, the trucking industry was told it would have to wait before the tax was repealed because the government simply could not afford to give up the revenue. In recent years, the tax has served no policy purpose whatsoever.

Note to Editors:

VIDEO NEWS B-ROLL - SATELLITE TRANSMISSION



Truckers are On The Road to a Cleaner Environment.
During National Trucking Week, Sept 7 - 14, Canadian truckers are
showcasing an initiative called enviroTruck

(This B-Roll is distributed for your free and unrestricted news use.)


DATE OF FEED: Tuesday, September 9, 2008

TIME OF FEED: 14:00 - 14:30 ET

COORDINATES: ANIK F2, C-Band, Transponder 3B, Audio Channels 6.8 & 6.2.
Toronto stations have been granted a PEGAD at the Toronto
TOC on Dome Transmit 1.


STORY SUMMARY:

Truckers are On The Road to a Cleaner Environment. During National Trucking Week, Sept 7 - 14, Canadian truckers are showcasing an initiative called enviroTruck which they say could put Canada on the road to cleaner air and lower greenhouse gas emissions.

Soon, the air coming out of the country's big rigs could be cleaner than the air we breathe in Canada's major cities. Sound a bit far-fetched? It's not. The industry's economic goals and society's environmental goals have never been so aligned. The Canadian Trucking Alliance's enviroTruck initiative could be the next great step to cleaner, greener freight transportation.

During National Trucking Week, Canadian truckers are showcasing the types of tractor-trailer units they say are not only smog-free, but also can play a key role in reducing the industry's carbon footprint and lowering greenhouse gas emissions, or GHG's

Conceived by the Canadian Trucking Alliance, enviroTruck marries the new generation of smog free truck engines with cutting-edge technologies and devices that make tractor-trailers more environmentally friendly.

footage includes:

Interview footage with David Bradley, Chief Executive Officer, Canadian Trucking Alliance. Also included is footage of various devices that make tractor-trailers more environmentally friendly.

Contact Information

  • Canadian Trucking Alliance
    Rebecka Torn
    Communications Director
    (416) 249-7401 x 224
    1-866-713-4188 (FAX) (FAX)
    Email: rebecka.torn@ontruck.org