Nav Canada Wants Excise Taxes Cut

AINalerts » August 17, 2006
August 18, 2006, 6:01 PM

Canada’s private, user-fee-based ATC system–Nav Canada–believes that general aviation operators are double-charged for use of Canada’s aviation infrastructure and that fuel excise taxes should be reduced. In a letter sent July 19 to the minister of finance, Nav Canada president and CEO John Crichton noted that airline passenger taxes were eliminated after Nav Canada acquired Canada’s navigation services, and it is inequitable for general aviation operators to pay Canada’s fuel excise tax because the aviation infrastructure is self-supported via user fees. Canadian GA operators pay 11 cents per Canadian liter of avgas and four cents per liter for jet-A, in addition to ATC and airport user fees. U.S. GA operators pay 5.6 cents per Canadian liter for aviation fuel and, for now, no user fees. Crichton asked the minister to lower avgas fuel excise taxes to at least the jet fuel rate and also to lower jet fuel taxes “by an appropriate amount.”

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