CTA applauds final step in meal tax deductibility rule

OTTAWA – The Canadian Trucking Alliance (CTA) says the Department of Finance’s changes to meal tax deductibility rules will allow Canadian long-haul drivers to enjoy the same meal deduction allowances as their U.S. counterparts.

The final step toward restoring meal tax deductibility to 80 per cent took effect Jan. 1.

“CTA is pleased that the Minister of Finance and the Government of Canada are continuing to honour their commitment, despite being under fiscal pressure,” said CTA CEO David Bradley. “The government deserves a great deal of credit for continuing to be responsive to the needs of the trucking industry and truck drivers in particular.”

Bradley said CTA played a role in the change with a lobbying campaign in 2006 and 2007 which led to the federal government’s promise to change the tax law. The campaign, End Canada’s Lunch Bag Let Down, featured postcards that truck drivers sent to the federal minister highlighting the need for this tax change.

“As some of the hardest working individuals in Canada, we are happy that long-haul truck drivers are benefitting from lower taxes as a result of CTA’s campaign,” Bradley said.

In order to be eligible for the tax deduction drivers must generally be away for at least 24 consecutive hours and the purpose of the trip must be to transport goods beyond a 160 km radius from the home location. In addition the vehicle must have a GVWR of greater than 11,788 kg.