Diesel hit hard in Federal Excise Tax changes

TORONTO, ON - Planned changes to the Federal Excise Tax (FET) on diesel fuel would eliminate exemptions for Temperature Control Units like reefers, Auxiliary Power Units, bunk heaters, and Power Take-Off units. And that threatens annual refunds of $800 to $1,000 per tractor-trailer as of July 1, according to the Canadian Trucking Alliance (CTA). "I am extremely disappointed," says chairman Gene Orlick. "The decision to drop this rebate is because another industry [airlines] abused the system, making unique claims for lighting and other electricity in their operations." When the Federal Excise Tax was first added to diesel in 1982, it was only meant to be applied to transportation fuel, according to a CTA briefing note about new language in the federal budget's Notice of Ways and Means Motion.