OTTAWA — A pre-budget blueprint authored by the Canadian Trucking Alliance has reportedly had an impact with federal legislators, says the trucking coalition.

The feds called for a comprehensive
review of CCA rates by June 30, 2007

The federal report contains 43 recommendations based on testimony received from over 400 groups and individuals, including the CTA.

CTA was specifically cited on three key issues in the report.

In the first, driver meal deductibility, the committee noted that “because of the nature of their work, truck drivers have meal expenses that, unlike many other employees, are necessary work expenses,” adding that, in questioning the fairness of a restriction on what may be seen as a legitimate business expense, the CTA wants tax deductibility for meals restored to 80 percent from 50 percent — a change made in the 1990s.

“While the committee does not make a specific recommendation on meal tax deductibility, it does argue for reduced personal income taxes, viewing personal taxation as a key to retaining and attracting workers and ensuring a healthy and competitive workforce,” CTA said in a statement

CCA Rate Acceleration for Trucks: Responding to the CTA’s recommendation of accelerated CCA rates for truck owners who buy new, low emission 2007 equipment, the committee said that “at a minimum Canada’s capital cost allowance rates must meet three criteria: similar asset classes are treated equitably; Canadian rates are similar to the rates for comparable asset classes in the United States and other countries; and Canadian rates at least reflect the useful life of these assets.”

Ottawa didn’t take a stand on better meal tax
deductions, but advocates reduced personal income taxes

The committee recommends the federal government complete a comprehensive review of CCA rates by June 30, 2007 and by no later than October 31, 2007 indicate whether accelerated CCA rates would enhance productivity and if it does changes should be made. In addition, the committee recommends that the government should, no later than October 31 2007, permit “environmentally friendly assets” to be reduced at a faster rate than their useful life and “the accelerated rate should be available on a time-limited basis in order to encourage early adoption.”

Infrastructure: Acknowledging CTA’s position on government dedicating a more substantial portion of its fuel excise tax revenues to Canada’s roads and highways and border crossing improvements, the recommends continued cooperation between the federal government and the provinces to “fund existing infrastructure initiatives at a level designed to reduce the public infrastructure deficit and the development of an allocation mechanism … that considers not only population but also the unique strategic and economic development needs of communities.”

While not specifically mentioning CTA, the committee noted “a number of witnesses commented that the recent rise in oil prices combined with the federal excise tax on fuel, has hampered the competitiveness of their industry.”

While the Minister of Finance is under no obligation to consider the finance committee’s report, David Bradley, CEO of the trucking alliance points out that “it is directionally similar to the minister’s own Advantage Canada economic plan, so one would hope that we will begin to see some of this thinking show up in the upcoming budget.” However, Bradley cautions, that “with all the competing interests and demands on government, there are no guarantees so there is still a lot of work to be done now and in the years to come.”