Railways hail proposed diesel tax cut
Published: September 9, 2008
Source: Railway Association of Canada

Ottawa – The Prime Minister’s announcement to reduce taxes on diesel fuel was received with high praise from the railway industry today. Cliff Mackay, President and CEO of the Railway Association of Canada, welcomed his intention to reduce the excise tax on diesel fuel from 0.04 to 0.02 cents over four years.

The rail industry has long held the view that the federal excise tax on locomotive diesel fuel should be eliminated in order to reduce costs for Canadian shippers and travelers and contribute to Canada’s environmental goals. The U.S abolished its comparable federal excise tax in January 2007.

“Rail is the most fuel-efficient form of surface transport. This initiative will help our manufacturers and exporters compete domestically and internationally,” said Mr. Mackay.

Canada’s railways transport 75 per cent of freight in Canada and 65 million commuters and inter-city passengers while creating only three per cent of greenhouse gas emissions.