US Congress has passed legislation that approves an increase by US$0.09 per gallon as a Inland Waterways Tax on diesel fuel that barge companies pay.
According to the Soy Transportation Coalition, the tax increase would generate an additional US$27 million to $36 million in revenue that would be used to help fund the cost of new lock and dam construction, and major rehabilitation, reported American Shipper.
"The nine-cent increase in barge fuel fee is something that is supported not only by the nation's soybean farmers, but also by the commercial barge and towing operators who pay it," said American Soybean Association president Ray Gaesser.
"We are pleased that the House passed this provision, and we call on the Senate to quickly do the same," Mr Gaesser said.
Inland waterway users for many years have asked Congress to raise the user fees for the trust fund by six to nine cents over the current 20-cent-per-gallon tax to address the backlog of repairs on the aging navigational system.
Unscheduled lock closures are on the rise to allow for mechanical repairs, and shippers fear a major failure could significantly disrupt businesses that depend on bulk transport to survive.
WORLD SHIPPING
11 December 2014 - 23:14
US Congress approves US$0.09/gallon diesel fuel tax hike for barge operators
US Congress has passed legislation that approves an increase by US$0.09 per gallon as a Inland Waterways Tax on diesel fuel that barge companies pay.
WORLD SHIPPING
11 December 2014 - 23:14
US Congress approves US$0.09/gallon diesel fuel tax hike for barge operators
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