News Release Archive

Finance Minister Bill Gillis announced today that interprovincial
truckers will be exempt from Nova Scotia's two per cent
transitional tax when they buy heavy duty trucks to transport
goods interprovincially. 

"Interprovincial truckers have a choice of where they can have
their vehicles registered and this modification of the tax
recognizes that," said Dr. Gillis.

Under the terms of the Canadian Agreement on Vehicle
registration, truckers who travel interprovincially can register
their vehicle in any province in which they travel. By
registering outside Nova Scotia, they would not be required to
pay the two per cent transitional tax. 

"Because of this agreement, we believe the amount of sales tax
received from this group of truckers would have been minimal,
whether we applied the tax to them or not," Dr. Gillis said. "The
original budget figure of $200,000 in tax revenues from such
sales was not going to be achieved."

"If we applied the tax to these people, they would simply
register elsewhere, and buy their trucks elsewhere," said the
minister. "By exempting them from the tax, we encourage trucking
firms to buy and service their vehicles in this province."

Approximately $10 million worth of sales by Nova Scotia Truck
Dealers are estimated to have been in jeopardy because of the

The amendments to the Sales Tax Act Regulations only apply to
interprovincial truckers, who are registered under the Canadian
Agreement on Vehicle Registration. This agreement allows truckers
to travel interprovincially without requiring a separate
registration in each province.

The exemption from the two per cent tax does not apply to
truckers who are not registered under the Canadian Agreement on
Vehicle Registration. Truckers who do business just in Nova
Scotia are required to be registered in Nova Scotia and, as a
result are required to pay the transitional tax.

The transitional tax will be reduced to one percent on April 1,
1998 and will be abolished on April 1, 1999.


Contact: Bruce Cameron

trp                       June 3, 1997 - 4:55 p.m.