QUESTION PERIOD — Finance
Fuel Tax Relief
June 23, 2022
Honourable senators, my question for the government leader concerns the high cost of living.
May’s record inflation of 7.7% is the biggest year-over-year increase since January 1983 — almost 40 years ago. Statistics Canada reported that Canadians paid 48% more for gas in May of this year than they did just one year prior.
Many countries have helped their citizens deal with high energy costs. On Sunday, South Korea announced that starting on July 1 and until the end of the year, taxes on gas and diesel will be further reduced to help ease the burden on consumers; a fuel tax cut took effect in Germany on June 1; and the Netherlands lowered their gas tax in April, also through to the end of the year. These are just a few examples, leader.
Canadians are finding it increasingly difficult to make ends meet. The Liberal government could do something about this by providing tax relief on gas. Will you do so?
The government is very aware, as we all are, of the impact of inflation and the rising cost of living on Canadians, whether it’s in gas prices or food, and I’ve spoken to this many times. The rise in gas prices is caused by several geopolitical events in Europe, as we all know.
The Government of Canada, while it is working on further measures to improve the overall cost of living affordability, it’s also clear when we see the situation in which we’re living that it is equally important — indeed urgent — that there is a transition to cleaner energy and electric vehicles, as we all know.
The government is working with our international partners to ensure the protection of the world energy supply chain. For the moment, the government has not committed to providing tax breaks at the pump at this juncture.
Yesterday American President Joe Biden announced his support for a three-month suspension of federal gas and diesel taxes and encouraged U.S. states to remove their own taxes on fuel. President Biden said he supports doing this to give working families some breathing room.
In contrast, our Minister of Finance seems to think she has done enough to fight inflation in Canada and has nothing new to offer families struggling to get by. In the other place on Tuesday, when Minister Freeland was asked to cut taxes at the pumps, she once again did not give a direct answer.
Leader, how much higher does inflation have to go before the Trudeau government will help Canadians having difficulty paying for gas just to drive to work?
Thank you for your question.
Different governments provide and conclude different policy instruments to address it. President Biden’s decision reflects the unique circumstances in which he finds himself in. His party finds itself in a unique situation in the United States.
The Government of Canada is doing many things to help Canadians weather the cost of living, as it did many things to help Canadians in an economic sense get through the pandemic, and it will continue to do so. It will continue to evaluate the levers and policy options that it has, but, as I said, at the moment a decision has not been taken to reduce or temporarily suspend the federal gas tax.
