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Opinion: Carney should heed Poilievre's call for gas tax relief

Conservative leader calls for temprorary suspension of some gas taxes and elimination of another to help drivers

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Cut taxes and cut waste to bring down the cost of gas.

Opinion: Carney should heed Poilievre's call for gas tax relief Back to video

That’s the message from Conservative Leader Pierre Poilievre and it’s really too bad his proposal will fall on Mark Carney’s deaf ears.

As gas prices reach for the stars, this is one of Poilievre’s policies that the prime minister should be stealing.

In a plan unveiled Thursday morning, Poilievre called for the federal government to suspend the excise tax and the GST on gasoline and diesel until the end of the year. That move, he says, would save drivers about 18 cents a litre on every fill-up.

He’s also calling for the cancellation of the Clean Fuel Standard, a carbon tax by another name. That would cut eight cents a litre at the pump for a total savings of 25 cents per litre.

Other countries already cutting the price

Poilievre is pointing to countries such as Spain, Ireland and Australia that have already cut their fuel taxes to help citizens cope amid higher prices due to the war in Iran.

“While the Iran war explains the sudden rise in world oil prices, it does not explain why Canadians pay so much more than Americans. Liberal taxes force Canadians to pay 28 cents-a-litre or 20 per cent more than in the United States,” Poilievre said.

“High Liberal fuel taxes drive up the cost of groceries, which are already rising the fastest in the G7.”

At the beginning of the year, the average price for a litre of gas across Canada was $1.30. Today, that same litre of gas will cost you $1.78, a 48-cent-per-litre increase.

Diesel, which powers most of the trucks moving goods back and forth across the country, started the year at $1.66 per litre and is now at $2.31.

The national average for gas in the United States, right now in Canadian dollars, works out to $1.47 per litre while the average diesel price is $2.

The difference is mostly due to higher taxes in Canada.

Federal government profiting from higher prices

On the GST alone, the federal government is bringing in several million dollars per day in additional windfall revenue they didn’t budget for thanks to the higher prices.

“Canadians deserve affordable fuel and food,” Poilievre said. “Seniors should be able to enjoy a worry-free drive to see grandkids, parents should not stress about filling the minivan for hockey practice, and workers should be able to fill their trucks stress-free.

“That is why Conservatives call for zero tax on gas the rest of the year.”

Alberta has a program to reduce fuel taxes when the price spikes.

The Alberta program cuts the gas tax on a quarterly basis starting when the price of a barrel of oil goes above $80 and is eliminated when the price is above $90. Despite oil currently sitting at $110 a barrel, the tax relief didn’t kick in April 1 because it came too late, according to the rules. The next price adjustment will be on July 1.

Poilievre said the Carney government could pay for these tax cuts by eliminating wasteful spending. He pointed to the failed gun “buyback” program, the high cost of outside consultants hired by the federal government and the planned $90-billion high speed rail system that has been proposed but is meeting some stiff opposition along the route.

Brian Lilley (blilley@postmedia.com) is a political columnist with the Toronto Sun.

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