Canada Extends Federal Fuel Excise Tax Pause Past September 7
Canadian Finance Minister François-Philippe Champagne said the pause on the federal excise tax on gasoline and diesel will be extended until at least next year, according to a statement from the Canadian Energy Marketers Association (CEMA).
The measure had been due to lapse on September 7. In April, the Carney government temporarily removed the 10-cent federal excise tax on a litre of gasoline and four cents per litre on diesel, per CEMA.
The government presented the extension as an affordability measure for Canadians, citing international turmoil in the Middle East and geopolitical pressures with the United States.
CEMA is asking for a transition mechanism, such as a rebate or credit, covering federally taxed fuel inventory held as of the effective date of the suspension. Fuel marketers that bought stock with the excise tax already embedded in the purchase price carry that cost into a market where the tax is no longer collected at the pump.
The association's request ties the extension of the pause to the same inventory question raised by the original April suspension, when the levy was lifted mid-stream on gasoline and diesel already in the distribution chain.
Source: globenewswire.com (opens in a new tab)1 sourcePermalink