Coalition Urges Congress To Suspend Federal Excise Tax On New Heavy-Duty Trucks
This week, a coalition of 116 national, state, and local organizations and companies sent a letter to Congressional leadership urging suspension of the 12 percent federal excise tax (FET) on the purchase of new heavy-duty trucks and trailers through 2021.
The Modernize the Truck Fleet coalition, which is led by American Truck Dealers, a division of the National Automobile Dealers Association, stated that the FET increases the cost of new heavy-duty trucks and trailers by $22,000 on average.
The FET is also the highest percentage-based tax that Congress imposes on any product.
Coalition members believe new truck manufacturing will help keep drivers in the workforce and suspension of the FET will jump start the economy after the pandemic.
Truck sales in the United States are now predicted to decline by 50 percent in 2020 due to the COVID-19 pandemic.
In March, Class 8 truck orders dropped by 52 percent compared to last year. As a result of government-ordered closures, truck manufacturing plants and truck dealers have either suspended or scaled back operations.
