CRA to provide diesel tax refund for APU fuel

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OTTAWA, Ont. – The Ontario Trucking Association (OTA) and Canadian Trucking Alliance (CTA) have successfully lobbied the feds to refund the federal excise tax on diesel fuel used to power auxiliary power units (APUs).

The changes will begin in April, according to the Canada Revenue Agency, allowing carriers to receive refunds on fuel used to power idlereduction devices.

The CTA and OTA as well as their tax advisors played a pivotal role in having the refunds established and simplifying the wording, according to a release issued by the associations.

The new policy says that a carrier will receive a refund of 100% of the excise tax paid on all diesel fuel not used to propel the vehicle, provided more than 50% of its non-propulsion fuel consumption is used to provide heating and air conditioning.

“Carriers who operate in-cab heaters and APUs have greatly reduced their non-propulsion fuel consumption. The 50% plateau should easily be attained,” says OTA vice-president, Stephen Laskowski. “The new policy should provide increased advantage for carriers investing in these anti-idling devices.”

The CTA says it will now work with carriers and manufacturers to help government develop a document that will assist them in filing future refund claims.

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