Poilievre proposes temporary suspension of fuel tax from Victoria Day to Labour Day.
Conservative Party Leader Pierre Poilievre is urging the federal government to suspend all taxes on gasoline and diesel from Victoria Day on May 19 to Labour Day on Sept. 2. This move aims to assist Canadians in saving money and enjoying their summer vacations despite the high inflation rates.
Addressing reporters in Vancouver, Mr. Poilievre highlighted the financial strain many families are facing, potentially leading to the cancellation of summer travel plans. He pointed out the increasing visits to food banks nationwide.
“Most Canadians are struggling to afford basic necessities. Taking a vacation seems out of reach, especially with gas prices reaching $2 per litre in British Columbia and staying high across the country,” said Mr. Poilievre.
The Tory leader urged Prime Minister Justin Trudeau to implement his proposed suspension of federal fuel tax, GST, and carbon tax on fuel. He believes that this action could reduce gas prices by 35 cents per litre, enabling families to embark on their summer getaways without financial constraints.
Mr. Poilievre suggested that the government could offset these tax suspensions by reducing spending on consultants. He mentioned that the Trudeau administration reportedly spends $21 billion annually on consultants, as reported by the Globe and Mail last year.
“Cutting down on consultant expenses and reallocating those funds to Canadian pockets can provide a fuel tax relief of 35 cents per litre from Victoria Day to Labour Day,” stated Mr. Poilievre.
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Prime Minister Trudeau responded to the proposal during his press conference, suggesting that discussions should involve the provinces responsible for a significant portion of excise and gasoline taxes.
He also mentioned that Mr. Poilievre’s proposition involves the carbon tax and accused him of wanting to eliminate the carbon tax rebate, which Trudeau believes helps Canadians cope with the rising cost of living.
Similar actions have been taken by other countries in recent years to ease the burden of rising fuel costs on consumers.
Spain and Italy implemented measures to reduce gasoline prices when energy costs surged after the 2022 Russian invasion of Ukraine. Italy lowered the cost per litre while imposing a temporary tax on energy firms, which were making significant profits at that time, to recover the expenses.
Spain announced a €16 billion plan that included initiatives to decrease prices by 15 cents per litre and required energy companies to contribute 5 cents per litre. These measures were only temporary.
According to GasBuddy, fuel costs in Canada are much higher than pre-pandemic levels, with some regions in British Columbia witnessing prices as high as $2 per litre just last month.
