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Gasoline costs have gone up greater than 50 per cent within the final yr and ‘individuals are struggling’ due to it, says the Conservative management candidate
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As Canadians are planning their highway journeys this summer time with fuel costs nicely above $2 a litre in sure components of the nation, at the very least one of many candidates vying to grow to be the subsequent Conservative chief is asking Ottawa to do its half and lower costs.
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Ottawa-area MP Pierre Poilievre wrote to Deputy Prime Minister and Minister of Finance Chrystia Freeland to ask that the federal authorities give a brief “tax break” on the pumps by slicing the fuel tax, carbon tax and GST from fuel from June 1 to August 31.
“Give individuals a break. Allow them to see their households. Allow them to drive to work. At this level, it’s the least your authorities can do,” he wrote within the letter dated Could 24.
Poilievre repeated his plea forward of Wednesday’s French-language management debate at a automotive storage in Laval, north of Montreal, the place fuel costs have been at a mean of $2.07 per litre that day, in keeping with the Canadian Car Affiliation’s web site.
In his letter, Poilievre confused that the fuel costs have gone up greater than 50 per cent within the final yr and that “individuals are struggling” due to it.
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“I’ve been touring throughout Canada — from Vernon, British Columbia to Gander, Newfoundland — and all over the place I am going I hear the identical factor: Canadians are making actually robust selections simply to refill their tanks with fuel and get the place they should go,” he wrote.
Freeland’s workplace didn’t reply on to the management candidate’s question or feedback.
“We all know that the price of dwelling is an actual concern for Canadians, and that’s the reason affordability was on the coronary heart of the funds launched final month. We’ll proceed to deal with supporting hardworking Canadians,” stated spokeswoman Adrienne Vaupshas in an e mail.
Some provinces have already lower the taxes they gather from fuel — and subsequently a few of their income — to assist decrease the price on the pumps.
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Rex Murphy: A compassionate authorities would kill its carbon tax proper now
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JJohn Robson: Congrats to the Trudeau Liberals for making their dream of excessive fuel costs come true
Alberta paused its provincial gas tax of 13 cents per litre on April 1, simply because the federal worth on carbon elevated, till at the very least June 30. Ontario’s Progressive Conservatives, working for re-election, pledged to implement a 5.7-cent lower for six months, beginning July 1.
On the federal degree, the fuel tax is roughly 10 cents per litre, whereas the carbon tax is an extra 11 cents a litre within the provinces below the federal mechanism. The GST represents 5 per cent on the worth of fuel which, at $2 a litre, would additionally characterize practically 10 cents a litre.
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Poilievre’s proposition would subsequently imply, technically talking, a drop of about 30 cents per litre in provinces below the federal carbon pricing system.
Trevor Tombe, professor of economics on the College of Calgary, stated that whereas oil-rich Alberta has managed to maintain its fuel costs decrease by cancelling its provincial tax, it comes at a value and it won’t be a fiscally prudent possibility for all governments.
“There’s a motive why solely Alberta did it,” he stated. “We’re rolling in dough from oil costs being excessive, consequently resulting in considerably increased record-breaking ranges of useful resource royalties.”
Whereas Tombe estimates that Alberta is depriving itself of $100 million a month in gas tax income, he calculates that slicing federal taxes would imply that Ottawa would lose roughly a billion a month.
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Kevin Web page, president and CEO of the Institute of Fiscal Research and Democracy on the College of Ottawa, added that whereas excessive fuel costs are a serious problem for Canadians and politicians need to assist, slicing taxes briefly may be a Band-aid resolution.
“Reducing taxes for a brief time frame could also be extra about attempting to assist than succeeding in serving to,” he commented in an alternate of emails.
The federal authorities has argued till that the rise in fuel costs has been pushed principally by crude oil costs going up and that Russia’s invasion of Ukraine is essentially responsible. However Conservatives have been steadfast in placing the blame on the Liberals’ carbon tax.
Web page, who was appointed parliamentary funds officer below Prime Minister Stephen Harper, agreed that the excessive power costs in the mean time are a “international downside” and urged world leaders to work collectively to extend power provide within the wake of the Russia-Ukraine conflict.
On that time, most if not all Conservative management candidates have agreed that Canada ought to do extra to provide power on the world stage.
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