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Message From The Editor

Boating Industry Canada's Newsweek

ROAD TAXES IN BOAT FUEL - MILLIONS AND MILLIONS COLLECTED

The last couple of weeks have stimulated some dialogue regarding fuel accessibility, cost and fuel taxes in the marine industry. In last week's Message from the Editor Paul Gautier, Manager of Waterfront Operations for the Town of Cobourg wrote to remind us about the road tax component in marine fuel and the impact that has on fuel prices at the docks.

This is not a new issue. In fact, I got a phone call from Sandy Currie who, for many years was head of the CMMA, (Canadian Marine Manufacturers Association), the predecessor to our current NMMA Canada.

He called to remind me that 20 years ago there had been a discussion between the associations of the day including the OMOA, (Ontario Marine Operators Association), the Canadian Power and Sail Squadrons, the Canadian Yachting Association and the CMMA.

This discussion centered around taxes, government revenues and the resources available at the time to various government departments who were responsible for boating safety. The road tax idea seemed to be a potential source of funding where only meager resources were in place at the time. Sandy created a spreadsheet to estimate how much road tax was collected through the sale of boat fuel.

The conservative calculation was based on average hours of use annually and estimated fuel use by individual power boaters, times the approximate number of powerboats in use in Canada. The number they arrived at turned out to be millions of dollars, in fact hundreds of million dollars in road taxes collected on the sale of gasoline and diesel sold for marine use.

Armed with very conservatively calculated, but very significant revenue numbers, the group challenged the government to apply some of those resources to benefit the boaters who were buying the fuel in the first place, through boating safety initiatives and other activities.

The amount of tax collected varies by province and is sometimes calculated on a volumetric basis and other times by value, but however you arrive at the bottom line, you get a big number!

Sara Anghel, the Executive Director of NMMA Canada also responded with interest. Perhaps the fuel tax issue and applying those revenues to the benefit of the boating industry, is a subject that should be part of the next NMMA Canada Day on the Hill.

Andy Adams, Editor aadams@kerrwil.com Twitter YouTube

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