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CTA Appears before House of Commons Standing Committee on Finance

In an appearance before the Federal Committee on Finance Tuesday in its study on the Pre-Budget Consultations in Advance of the 2025 Budget, the Canadian Trucking Alliance used the opportunity to highlight three key areas of its pre-budget submission, that included :

  • Addressing misclassification of workers in the trucking industry, dealing with the Underground Economy and Tax Evasion;
  • The need to expand and make permanent past 2024 the Accelerated Investment Incentive (AII) &;
  • Address the challengers the Federal Carbon Tax

The CTA pre-budget submission took the approach that the Alliance has an opportunity to have government take a serious look at the state of the trucking business in this country and take steps to better support Canadian businesses and the economy.  It also focused on bringing back a tax system and business environment that incentivizes growth and ensures fair competition.

On the issue of misclassification, it was stressed that this issue needs urgent action, including the lifting of the T4A enforcement moratorium, a real enforcement strategy from CRA to deal with noncompliant PSBs and more enforcement of Canada Labour Code Part III as it relates trucking.

Related to the Accelerated Investment Incentive, CTA reiterated the need for the government to reinforce its commitment to helping the industry reinvest in the national fleet by: increasing the first year deduction up to 80%, offer a more aggressive rate up to 100% on natural gas, hydrogen fuel cell and electric rucks, to promote these alternative fuel technologies and make the AII in both these respects permanent.

With respect to the Carbon Tax, it was stressed to the committee that currently, no wholly viable alternative exists, and the current tax serves no policy purpose in the trucking sector.  The carbon tax needs to be repealed from diesel fuel until viable propulsion alternatives are available for the industry and the Canadian supply chain to choose from.  The carbon tax on diesel fuel is currently having zero impact on the environment and is only serving to needlessly drive-up costs for every good purchased by Canadian families and businesses.

CTA fielded a number of questions from Committee members, including concerns that an increasing carbon tax could have a linkage to driving more fleets into the underground economy by misclassifying their drivers in attempts to lower their operating costs.  This new challenge adds insult to injury on an already fractured system where gross non-compliance runs rampant with no sign of a committed action plan by government to dedicate the necessary enforcement resources.

Currently, CTA estimates the federal carbon tax is adding between $15,000 to $20,000 annually in additional fuel costs per long-haul truck at its current rate, and this figure will double by 2030 if the tax is not dealt with.

CTA will continue to work with its members and the government to ensure issues of productivity, supply chain stability and fair competition remain front and centre in the lead up to Budget 2025.

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