Do Canadian RRs pay the extra fuel taxes like automobiles/trucks do?

Trains Magazine General Discussion
1

With a few isolated exceptions we do not have toll roads in Canada. Instead we pay extra fuel taxes (in addition to the general PST and GST), and this tax revenue is used to build and maintain our roads. (Side note: 100% of this extra fuel tax revenue does not go towards the roads…it is much less, with the rest going to the general coffers.)

Since Canadian RRs own their own ‘roads’, and are responsible to maintain their own roads, it seems only fair they would not have to pay these extra fuel taxes, but only the regular PST/GST taxes. However, what seems fair to us, and govt can be two different things.

So can someone who knows for a fact if Canadian RRs pay these extra fuel taxes or not, please let me know. This is for fuel purchased in Canada, for routes that exist in side Canada…i.e. Halifax to Montreal, Toronto to Winnipeg, etc.

2

According to this article on CPR’s website it is true that Canadian railways pay the general fuel taxes. The article addresses fuel taxes in the fifth paragraph after the bullet points.

http://www8.cpr.ca/cms/English/Media/News/General/2005/CPR+showcases+success+in+greenhouse+gas+reductions.htm

I remember this was a big issue in the early 1990’s when the railways in Canada were losing a lot of money and market share. As they restructured, became profitable again and started increasing traffic I guess the urgency of reform kind of dropped into the background and it looks like nothing has changed.

Here is a link to a speech made by CPR President Rob Richie in Boston regarding railway infrastructure.

http://www8.cpr.ca/cms/English/Media/Speeches/2004/New+England+Railroad+Club.htm

Overall, I think it is an interesting article that is worth reading. However, specifically in regards to taxation his comments are particularly interesting. Not including income taxes railroads in North America are paying an average of $22k per mile of track operated. Sounds like a skewed taxation policy to me.

The following is an excerpt from Rob Richie’s speech on railway taxation policy. He doesn’t mince too many words.
"One area public policy makers must examine is taxation. The tax situation for railroads is very, very ugly.

How bad is it?

Let me put it as politely as I can – the railroads are getting hosed across the board.

In Canada, the railroads pay fuel tax, property tax, sales tax, capital and customs tax, income tax and payroll tax.

None of this money comes back to the railroads to improve and expand infrastructure and this is undermining the strength and potential of our nation’s freight rail system.

In CPR’s case, we paid CDN $235 million in input taxes across Canada in 2003. This does not include income tax. This works out at an astonishing $25,776 per track mile a

3

…and with Paul Martin in charge as our Prime Minister, who and whose sons happens to own Canada Steamship Lines…I guess he is in no hurry to reduce Canadian RR taxes., including fuel taxes.