TORONTO, Ont. — Yesterday’s provincial budget held a key proposal that, if approved, would change the way the Retail Sales Tax Act is applied to trucks registered under IRP and used in Ontario.
The plan would see the province replace the current retail sales tax on trucks with an annual prorated sales tax to be paid each year at the time of registration.
The tax would be calculated based on the trucks purchase price, and the amount of mileage racked up by the vehicle on Ontario highways. The end result would see truck owners paying a smaller provincial sales tax during the year of purchase, and yearly taxes through IRP registration.
The Ontario Trucking Association (OTA) is currently examining the proposal, to see if it offers a viable solution to the industry’s tax woes.
"OTA’s preferred approach to sales tax reform which is long overdue would be harmonization with GST, or a straight exemption. However, the proposed retail sales tax is worthy of consideration and OTA has engaged tax professionals to help us analyze this form of taxation," says OTA president David Bradley.
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