Discussion in 'Business Strategy' started by Michael Ludwig, Feb 26, 2016.
Mar 1st a new carbon tax went into affect in BC affecting rates.
Good point, however I was referring to Trucking in general. There are just as many, if not more provincially regulated carriers that operate only within Ontario.
The Ontario Pension Plan is a complete different story, if you are crossing borders you would be Federally Regulated and the Plan would not not affect you as a matter of fact you can't even opt in which is good for some but when your sister company is not Federal and they have to pay what do you do then?
Don't forget your contribution to the new Ontario Pension Plan for company drivers and staff........
Can someone post a link to this proposed tax? I cannot find it and would like to bring it up with my MPP. It would only make sense that the tax on diesel should be included in the IFTA calculation as fuel purchased here in Ontario may not be fully utilized in the province of Ontario - that is what IFTA was setup for.
Like all other added operating expenses, such as increased licencing fees, rising insurance costs, higher vehicle acquisition costs, etc., etc., etc., most carriers will (or should) incorporate them into their rate structures. No one should expect a supplier, or any entity, to operate at a break even position. Those that do won't be around very long, and as a broker I prefer long term relationships with my suppliers.
Apparently there is not a 4.3 cent a liter eco tax on diesel ... it's 6.0 cents a liter and it's going to be implemented end of the year.
Someone said something about not being able to pass it on ... how can you not pass it on?
As for the tax itself, if it's not applied with the IFTA reports, or calculated like fuel tax where you pay on what you should have used, then it only makes sense to buy fuel elsewhere ... i.e. New Jersey for me. It's not trading off anything ... it's simply buying fuel without the eco tax.
@lowmiler88 ... I'm going to use a Trumpesque statement and say if I ever go into politics I would run for the Liberals because the supporters are the dumbest people and believe anything they are told and never question it. ... Best line ever ... LOL
They've had ECO tax for quite some time now out west. soon it'll be every where BUT will this go into the slush fund or will it actually go to carbon foot print and cleaning up the environment? This is a wait and see situation.
A few yrs ago Toronto imposed a tax .05/ plastic bag. It was proven it was a Ford BS and nothing was done with the money for the environment so it was OFFICIALLY dropped. There are stills lots of stores charging the .05/bag today.
There are lots of taxes that have been rescinded over the years but rates never go down. Carriers are not big oil companies so don't be looking for any handouts, it'll never happen. Like all other increases in business hand the cost to the customer. The companies that don't do that will soon be out of business. Just like the hundreds of little trucking guys that close their doors every other month cause they don't charge enough. There is a point where we need to set rates and stick together. Will this occur? Probably not. We are in a business where we have to roll with the punches.
We got that tax early fall 2015. Another reason why we cost more in QC. Many vowed to never fuel in Quebec ever, ever, ever again. I do fuel taxes and ... that didn't last very long lol...
Not so. I fully expect to see increases in the rates given to my firm by carriers as a result of this new tax. That is exactly how it should be. If my supplier's costs go up, and they need to increase their rates because of it, that's just business 101. My comments regarding hand-outs was not directed at you lowmiler88, but the post that followed your "Monday morning rant". Reading them together, although by two different posters, just seemed a bit funny to me.
Thanks Loaders I am a very typical Canadian and proud of it I really don't see that I asked for a handout EVER! If you do not like this particular discussion feel free to pass on by because this particular thread is about eco tax and the effect on business my guess is you are a broker so adding 5% to one of the largest expenses does not matter to you.
Don't get me wrong. I believe strongly in a healthy discussion and exchange of ideas regarding all current topics, especially politics. I also agree that all governments, of all political stripes, usually fail miserably when it comes to prudent, fiscal management. I just find it so ironic, that sometimes the same people who are so vocal in their criticisms of government, are the first ones to ask for a hand-out when the going gets a bit tougher for them. "I hate this stupid Liberal/Conservative/NDP government, they can't do anything right, but geez, I'm having a hard time being profitable, so why doesn't the government help me out?"
Hi Loaders! I think I am one that isn't convinced 100% that the government is going to spend this money in a way that will benefit the citizens. I think I am not alone...thus the negative comments in this thread. I draw my opinions from past examples like this silly environmental tax we pay at point of purchase now on a wide variety of goods. And funny how the tax is being talked about now, while fuel is low. I bet they wouldn't have brought this up while fuel was at $1.40/litre. I'm pretty sure we will have a hard time passing this cost along to suppliers...like every other cost increase we have to deal with. Some suppliers you can reason with...others not. I do see your point... I just think we are all sick of the government making sloppy fiscal decisions and expect us to pay for it in some way or another.
Wow, what a couple of typical Canadian comments! The first one ranting on against government policy, the second crying out for assistance from that same government. Whatever happened to taking care of yourself, working through the difficulties and don't be looking for either someone to blame for your problems, or someone to bail you out of them?
I wish the government would do something to help out transport companies. Rates have dropped over the years while fuel costs increased.
It is actually worse the fuel plants are getting a "Carbon Tax" also so the price will be even higher, the trucks hauling to the station cost more so it will be even higher. I love the line it will not go into the general fund but it will be used for blah blah blah and Ontario Hydro so our bills do not keep going up. I'm going to use a Trumpesque statement and say if I ever go into politics I would run for the Liberals because the supporters are the dumbest people and believe anything they are told and never question it. Monday morning rant over.
I look forward to getting the official position. They make it tough with all these taxes for drivers.
Well, I'm getting conflicting info that diesel will have a 4,7 % increase in tax after all, but gasoline "only" 4,3%....Hmmm
I hope you are right, but pretty sure that diesel, sunshine and oxygen are on the list.
Pardon me, but I am under impression it's only on gas or gasoline, not diesel.., Yet...