Taxation & Fiscal Policy

The CTA actively combats tax evasion within the industry, particularly the “Driver Inc.” scheme, which we estimate costs the Canadian government up to $1 billion annually in lost tax revenue. Our efforts include pushing for the reinstatement of mandatory T4A issuance to improve accountability and traceability, and launching public awareness campaigns like “Stop Tax and Labour Abuse” to encourage government action.

The Canadian Trucking Alliance advocates for changes to fuel taxes to pave the way for a greener trucking industry and a fairer tax and policy environment. This includes urging Ottawa to reinstate the federal excise tax (FET) refund for trucking idle-reduction technology (TIRT), which directly supports reduced fuel consumption, and reversing the removal of excise tax refunds for fuel consumed by power take-off units (PTOs). Furthermore, we call for the government to implement a tax exemption for fuel-saving technology, incentivizing the adoption of cleaner and more efficient practices.

The CTA champions tax incentives to encourage the adoption of environmentally friendly technologies. This includes advocating for the expansion and permanency of the Accelerated Investment Incentive (AII), with a proposed increase in the first-year deduction up to 80% on all trucks and trailers. We also propose even more aggressive deduction rates (up to 100%) for natural gas, hydrogen fuel cell, and electric trucks to accelerate the transition to these alternative fuel technologies.

Beyond specific tax measures, the CTA advocates for broader fiscal policies that benefit the industry. This includes calling for the expansion of personal tax deductions for truck drivers, making the AII permanent to support investment in newer and greener trucking technology, and pushing for a reversal of the removal of excise tax refunds for fuel consumed by power take-off units (PTOs).