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June 23, 2021   |  


FET on Heavy-Duty Trucks Deters Sales, ATD Says

Other industry experts agreed with ATD’s position.

“The repeal of the FET is the best option, however last year’s effort [in Congress] was asking for a temporary suspension, and there could be compromise positions yet needed to get something — anything accomplished,” said Allen Schaeffer, executive director of the Diesel Technology Forum, an advocacy group.

“Reforming [the tax] might be less offensive to some who might oppose tax cuts in this space outright and more of an opening to others who could get behind reducing it or sunsetting it or other adjustments,” he said.

The tax was levied in 1917 to pay for World War I and was then 3%. ATD’s written history of the tax noted it has been “briefly eliminated, raised twice prior to World War II, increased again and rolled into the Highway Trust Fund in 1956, repealed by the Senate in 1975, and increased to 12% in 1982.”

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