The Canadian Trucking Alliance (CTA) says it applauds the Conservative Party leader Pierre Poilievre’s promise to reverse the capital gains tax (CGT) hike if he becomes the Prime Minister.
CTA has been calling on all federal parties to focus their attention on ‘much-needed’ measures that will improve growth and investment in Canadian businesses rather than hinder them, according to the news release.
“The trucking industry is dominated by small-medium enterprises (SMEs). Operating a SME in trucking has many challenges,” said CTA chairman Greg Arndt and owner of Winnipeg-based Jade Transport, in a release. “Most do not have retirement funds to secure our livelihoods for the long-term while we try to maintain the viability of our businesses for the next generation. An increase in a retroactive tax like capital gains will be devastating to small and medium-size trucking owners and their families.”
Arndt added that many family-run trucking businesses have expressed concerns about the CGT increase, which they believe will hinder future investments and jeopardize their survival. “[This] announcement is a helpful step in making trucking more competitive again; but much more tax relief and changes are required to restore the viability of family businesses which make up the backbone of the Canadian economy,” he said.
Ontario Trucking Association chairman Mark Bylsma shares the sentiments, emphasizing the impact on multi-generational family businesses.
“The increase in the capital gains tax announced by the current government was crushing for carriers like Spring Creek when it was announced last year. It’s a penalty to small and medium-sized business owners and signaled to my children that multi-generational family businesses are a thing of the past,” Bylsma said. “If you own a small or medium-sized trucking fleet or any other family business, [this] announcement by the Conservative leader provided some relief that common sense can be restored in how we tax and support Canadian family businesses.”
Poilievre’s announcement also said that the Canada Revenue Agency (CRA) is already enforcing the CGT increase, even though it has yet to be legislated. The CTA said it will seek clarification from CRA and share details with its members.
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