NWRA urges Congress to suspend Federal Excise Tax on purchase of new trucks to help jumpstart economy, create jobs

The National Waste & Recycling Association (NWRA) and several of its member companies announced on Sept. 17 that they have joined with dozens of other national, state and local organizations and companies in sending 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 through the end of 2021.

The FET increases the cost of new trucks and trailers by $22,000 on average, according to NWRA. Truck sales in the United States are predicted to decline by 50 percent in 2020 due to the current global health crisis. In March, truck orders dropped 52 percent compared to last year. A suspension of the FET would increase sales of trucks and, in turn, save or bring back jobs for almost 8 million Americans employed in jobs related to trucking, NWRA says.

“As Congress prepares to pass a continuing resolution to keep the government running before they leave town to campaign for reelection, we urge its leaders to suspend the FET and jumpstart the manufacture and sale of the vehicles that are the backbone to our industry,” NWRA President and CEO Darrell Smith says. “Doing so 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.”