NTEA —The Association for the Work Truck Industry has joined the National Auto Dealers Association, American Trucking Associations and more than 100 other state and local organizations urging Congress to suspend the 12% federal excise tax (FET) on heavy trucks and trailers through 2021 as they consider additional legislation to respond to the coronavirus pandemic and assist with U.S. economic recovery.
The groups seek FET relief for the following reasons:
- During this crisis, the nation has been more dependent than ever on truck fleets.
- The average age of a truck on the road today is almost 10 years old.
- The 12% FET on heavy trucks and trailers is the highest excise tax in the nation.
- FET has grown from 3% to 12% since it was instituted in 1917 to help fund World War I. Today, it routinely adds $12,000–22,000 to the cost of a newer, safer, cleaner and domestically produced truck, according to NTEA.
- The suspension of the FET can aid in keeping the nation well supplied and in rebuilding America’s vital truck manufacturing industry and related employment.
“NTEA believes that suspending the FET at this time would serve as an effective incentive to increase the sale of safer and cleaner trucks while helping to retain domestic-based manufacturing jobs and rebuild the economy,” said Steve Carey, NTEA president and CEO.
NTEA has provided additional FET resources here.
This article was originally posted by American Trucker.