OTTAWA, Ont. — While there were no trucking-specific measures included within the federal budget announced yesterday, small business will get a tax break and the budget delivered a small surplus.
The Canadian Trucking Alliance (CTA) reacted to the budget, noting transit received the lion’s share of infrastructure spending.
A new Public Transit Fund was created, with money allocated to it expected to climb from $250 million in 2017-2018 up to $1 billion per year after 2019.
The CTA noted the budget documents addressing the transit funding indicated funding would improve the movement of both goods and people.
“No doubt this relies on the assumption that enough people will actually get out of their cars and take transit for congestion to be alleviated – reasonable in theory but it remains to be seen whether it will actually have the desired impact,” the CTA reasoned in a release.
Small businesses were promised a 2% reduction in the small business corporate tax by 2019, phased in through a series of 0.5% increments, reducing the rate from 11% to 9%.
There was also reference to a Canada 150 Community Infrastructure Program, which will start in 2017 and could provide some financial support for roads, but details were sparse.
The CTA is opposed to the excise tax on fuel, but as long as that tax exists, the organization would like to see those funds reinvested into highway infrastructure and to encourage the adoption of newer, more efficient trucks.
“There were no other budget measures specifically related to trucking although it might be argued that to the extent tax breaks for manufacturers generate growth in that sector, some truckers may benefit indirectly in terms of higher freight volumes,” the CTA announced.