OTA asks for tax relief in next provincial budget
TORONTO, Ont. — The Ontario Trucking Association (OTA) says the province should help revive the sagging truck and equipment market by offering tax incentives towards the purchase of new trucks, trailers and fuel-saving devices.
OTA president, David Bradley, addressed the Ontario Legislature’s Standing Committee on Finance, and put forth some recommendations that would encourage the purchase of new equipment.
“We believe that a package of initiatives aimed at stimulating economic activity in the short-term and which is in the long-term competitive interests of the Ontario economy and the environment is warranted,” he said. “In addition to a strategic infrastructure program, we believe that there also needs to be a meaningful program of measures introduced to get consumers – both the public and businesses – purchasing again. The trucking industry is the major contributor to GDP of all the freight transportation modes and as such has a major potential role to play in this regard. We recognize that there are and will continue to be many demands on the Ontario government from many sectors seeking inclusion in a stimulus package. OTA can only speak for trucking. What we are seeking in the next budget is justifiable not only in these difficult times, but also in terms of sound and appropriate tax policy and the country’s long-term economic, environmental and safety goals. Ideally, OTA would like to see Ontario move to a value-added input tax system, preferably by harmonizing with the GST, or through some other mechanism. This is sound tax policy.”
Specifically, Bradley said the industry would welcome a temporary exemption/rebate from the PST/Multi-Jurisdictional Vehicle Tax on the purchase of new tractors, trailers and fuel-saving devices such as APUs, side skirts and wide-base single tires.
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