Scrapping the GST on carbon tax could save Canadians hundreds of millions of dollars
The Canadian Taxpayers Federation (CTF) is urging the federal government to put an end to its tax-on-tax practice, following the release of a report by the Parliamentary Budget Officer (PBO) that reveals substantial potential savings for taxpayers.
The report indicates that eliminating the Goods and Services Tax (GST) applied to the carbon tax could save Canadians hundreds of millions of dollars annually.
Franco Terrazzano
Franco Terrazzano, the Federal Director of the CTF, emphasized the significance of the PBO’s findings. “The PBO is clear: the GST on the carbon tax will cost Canadians half a billion this year and more than $1 billion every year by 2030,” stated Terrazzano. “Prime Minister Justin Trudeau and his ministers are having a retreat in Montreal trying to figure out how to make life more affordable. Here’s an idea: they could save Canadians real money right now by picking up the PBO report and ending their tax-on-tax.”
The federal government’s practice of applying its sales tax after all per-litre taxes are added is commonly referred to as tax-on-tax.
According to the PBO’s estimates, removing the GST paid on the carbon tax would result in immediate savings of $486 million this year, with the potential to exceed $1 billion annually by 2030.
A separate PBO report indicates that, even after rebates, the carbon tax costs the average family up to $710 this year.
On April 1, the federal government plans to raise the carbon tax rates to 17 cents per litre of gasoline, 21 cents per litre of diesel, and 15 cents per cubic metre of natural gas.
“Ending the tax-on-tax would save Canadians every time they fuel up to go to work and heat their homes during the cold winter months,” Terrazzano asserted. “Trudeau can and should make life more affordable by ending the tax-on-tax and scrapping his carbon tax.”
To interview Franco Terrazzano, click here.
| Staff
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