Lobbying efforts stress no new taxes on auto sector
March 22, 2021
With the automotive industry down significantly in 2020, and still reeling from the impacts of the COVID-19 pandemic, CADA has been focusing part of its lobbying efforts with the federal government on ensuring no new taxes are imposed on the sector, according to Huw Williams, the association’s public affairs director.
“When you compare the decline in auto sales experienced in 2020, even at the height of the financial crisis in 2009 the industry was down only 11-13 per cent. During the pandemic, it was down 20 per cent,” said Williams in an interview with CADA Newsline. “The point we are making with the government is that the industry is still down significantly this year, and that any new taxes will hinder progress towards recovery.”
CADA submitted its recommendations to the Department of Finance, which stressed the importance of ensuring no new taxes that could hurt vehicle production, dealerships or their employees, should be introduced during such a fragile economic period.
Oumar Dicko, the association’s chief economist, said they are also pushing the idea that the industry needs measures to facilitate the recovery of the automotive industry with programs such as a national vehicle scrappage program that will help stimulate vehicle sales.
That program was included among CADA recommendations to the federal government for a strong and robust recovery package that will not only help revive the industry, but also boost the economy through incentive programs that could increase interest in the purchase of vehicles after the pandemic. In the case of the national scrappage program, Dicko said it would need to be well-designed and funded.
“We've had a number of meetings with key officials of the federal government, and we will continue to stress these important points to facilitate the recovery of the auto sector following this unprecedented global crisis,” said Dicko.