The Canadian Trucking Alliance (CTA) is calling for trucking-related changes to federal carbon pricing in the wake of government plans to offer a three-year carbon tax exemption for home heating oil in certain regions.
“The Canadian Trucking Alliance (CTA) welcomes this recognition by the Government of Canada that the carbon pricing mechanism is causing economic hardship for Canadians and the changing behavior can be challenging for certain areas of the economy,” CTA president Steven Laskowski said in a bulletin distributed by the Atlantic Provinces Trucking Association (APTA).
“This statement also aptly describes the situation facing trucking companies of all sizes from across Canada.”
The asks include a suspended carbon price on diesel for three years, with the alliance citing there are no “readily available or operationally feasible” zero-emission alternatives for longhaul truckers. Just 2.8% of passenger vehicles use diesel, it adds.
Excise tax and tax rebates
Canada’s largest trucking association is also calling for the four-cent-a-liter federal excise tax on diesel to be suspended until inflation is under control, noting that it costs longhaul drivers an extra $45 to fill up 300 gallons (1,100 liters).
The final request asks the government to restore the tax rebate that had been applied to fuel used for reefers or pumps to unload food products or commodities.
“Despite the best efforts of our sector and our equipment suppliers to advance decarbonization efforts, the diesel engine will continue to remain the core method of propulsion for our sector – not necessarily by choice, but because of operational and technological realities that will limit uptake of alternate power options in our sector,” Laskowski said.
“Carbon pricing cannot significantly change engine purchasing behavior in trucking. Instead, carbon pricing will only continue to increase the cost of transportation services and, therefore, all goods that are moved by truck, including food, clothing, household goods and other products critical to the wellbeing of Canadians.”
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