Canadian Trucking Alliance tells Gov’t Finance Committee to act quickly on tax policy, security

The Canadian Trucking Alliance has asked the Federal Government’s Standing Committee on Finance to act quickly in the area of tax policy, not only to maintain Canada’s position as an attractive place to invest, but to enhance Canada’s share of North American trade.

The committee heard from CTA on the short-term negative fiscal impact that fuel and insurance price hikes, and the BSE crisis, have had on the for-hire trucking sector.

However, the prime focus of CTA’s presentation was to make committee members aware that cross border trucking fleets and their customers’ businesses have entered a transitional phase in the North American supply chain brought on by new customs and security requirements, currency fluctuation, and increasing competition from southern US states for new capital investment.

“This evolutionary development of the supply-chain may not be in the long-term interest for the Canadian economy. If these public policy issues are not managed correctly by the Government of Canada, economic growth will contract, the manufacturing base will shrink, and the demand for CTA members’ services will decline, “said David Bradley, CEO, CTA.

CTA urged the Government of Canada to work with the trucking industry to help both drivers and company owners cope with these changing competitive and cost measures. Specifically, CTA requested that the role of fiscal instruments must be expanded to bring about the changes required:

1. Improved Capital Cost Allowance (CCA) rates for Trucking Equipment
2. Separate CCA rates for Environmentally Friendly Trucking Equipment
3. Meal Deductibility for Truck Drivers
4. Employment Insurance Premium Rate-Setting Mechanism

“It’s not good enough for Canadian business taxes to be competitive with US rates, we need a distinct northern advantage to restore the lustre to doing business in Canada,” added Bradley.