The American Truck Dealers (ATD) recently led 116 industry organizations in encouraging legislators to suspend the 12 percent federal excise tax (FET) on new heavy-duty trucks and trailers through 2021.
The ATD, a division of the National Automobile Dealers Association (NADA), recently spearheaded an effort to forward correspondence to congressional leaders in support of suspending the FET in the wake of weakened truck demand from the COVID-19 pandemic.
Industry officials indicated they expect domestic truck sales to be suppressed by 50 percent this year. Last month, Class 8 truck orders dropped by 52 percent compared to last year, attributing the decline partly to closures of truck manufacturing facilities and dealerships.
“The trucking industry solidly supports the suspension of the FET to spur sales of newer, cleaner trucks and help support and bolster the jobs of the 7.8 million Americans employed in trucking,” said Steve Bassett, ATD chairman and dealer principal of General Truck Sales in Muncie, Ind. “Unlike other stimulus programs, FET suspension does not require more paperwork, new compliance rules, or a new program. With our nation more dependent than ever on trucking to deliver goods and critical medical supplies, we urge Congress to suspend the FET to bolster our trucking sector and help our economic recovery.”
Bassett said suspending the FET would increase sales of cleaner and safer heavy-duty trucks and trailers by making them more affordable.