NWRA backs commercial truck tax break

The Arlington, Virginia-based National Waste & Recycling Association (NWRA) has added its signature to those of other national, state, and local organizations and companies in a letter to congressional leaders urging the suspension of the 12 percent federal excise tax (FET) on the purchase of new heavy-duty trucks and trailers. The FET increases the cost of new trucks and trailers by $22,000 on average, says NWRA.

“Suspension of the FET would serve as an effective means to immediately spur sales of newer, cleaner trucks, which would retain jobs in the trucking sector and help rebuild our economy,” says NWRA President and CEO Darrell Smith. “We urge Congress to include this measure in future COVID-19 legislation to assist with the economic recovery.”

The NWRA says several of its member companies also signed on to the letter requesting the FET suspension.

Truck sales in the United States could decline by 50 percent in 2020 because of factors related to the COVID-19 virus, says NWRA. In March, truck orders dropped 52 percent compared to last year, according to the group (although the association does not cite a source). In the European Union, new vehicle registration figures tracked by the Brussels-based European Automobile Manufacturers’ Association (ACEA) showed a 47.3 percent plunge in March 2020 compared to 2019.

A suspension of the FET “would increase sales of trucks and, in turn, save or bring back the livelihoods of almost 8 million Americans employed in jobs related to trucking,” states NWRA.