Tool Tax Meeting With Ministry of Finance

Industry representatives from the Automotive Industries Association (AIA) and CARS recently held a meeting with officials at the federal Ministry of Finance to discuss the tool tax issue.

This issue has long been at the forefront of concern for technicians and has been extensively lobbied for by industry. Continuing on the momentum from the Tool Tax Forum held in February and a presentation to the House of Commons Standing Committee on Finance, a meeting with the Ministry of Finance was a welcomed opportunity to discuss potential models or systems that could be developed and alleviate the some of the taxes associated with the cost of tools.

It was noted to government that there will be a shortage of workers over the next few years, mainly due to retirements. Further, there currently are not enough young people entering the industry to meet future demand. The concern is that many young people who might consider the automotive industry for their career will abandon that possibility when faced with the reality of high tool costs and low entry-level wages.

CARS and AIA took the opportunity to outline several initiatives undertaken by industry to encourage more young people to pursue occupations in the industry. CARS has offered youth employment programs, has developed training and professional development opportunities and has made several equipment donations to enrich existing training programs. CARS also works in partnership with colleges across Canada to ensure the training offered meets the needs of industry.

As industry continues to take steps to ensure the workforce can continue to meet demands for skilled labour, it was noted that a partnership between industry and government would further these efforts.

It is hoped that through continued communication between industry and government, steps can be taken to develop a model or system by which the barrier to entry, and disincentive to employment, resulting from the costs of tools may finally be addressed and implemented.