QUESTION PERIOD — Finance
Tax Fairness
April 16, 2026
Senator Moreau, the temporary suspension of the federal fuel excise tax is expected to cost Canada — and thereby Canadian taxpayers — $2.4 billion per year in foregone tax revenue. Economists have highlighted that this was not the only option. Olivier Gervais, a director at Scotiabank, notes that the Canada Groceries and Essentials Benefit GST tax credit would be “. . . another lever that would be relatively easy to use . . . .” and he notes it would allow the government to take “. . . the extra money they’re getting from higher oil prices and redistribute that . . .” more efficiently to the Canadians struggling most, not only with the cost of fuel but also the knock-on impacts on food costs.
Instead of a plan that would prioritize those most in need, why are low-income taxpayers now footing part of the bill every time Canadians use their cars?
The temporary suspension of the federal fuel excise tax is a decision that the government made as a temporary measure. It is a responsible and targeted measure that will reduce operating costs for truckers and businesses. Therefore, it will go through the chain in the food, agriculture, housing, construction and delivery sectors. It will indirectly benefit all sectors of the economy.
As far as the economy is concerned, the government has targeted affordability as the main criteria of intervention. That is the reason why there are many measures concerning household affordability and food security that have been put in place since Budget 2025.
Thank you for that, Senator Moreau. As income inequality increases in Canada, it is driving increased homelessness, hunger and mental health crises. What steps is the government taking to implement its National Advisory Council on Poverty’s priority recommendation for guaranteed livable basic income — something the Parliamentary Budget Officer suggests would cost as little per year as what the government has just spent on fuel excise tax relief?
In housing, the strategy and the new building projects in Canada are not only aimed at new owners but also homelessness. There are billions of dollars being invested by the government to ensure that there are resources for homeless persons. The government is also investing in every community that needs serious investment in housing, like Indigenous communities, as well.
The government is taking action in many fields to ensure that homeless persons are —
Thank you, Senator Moreau.
