The provincial government is looking at a range of options to alleviate some of the economic pressure caused by soaring fuel prices.
Finance Minister Siobhan Coady says the provincial portion of taxes that contribute to the cost of a litre of gas represents 14.5 cents, but there is a federal back-stop in place to keep carbon emissions low that presents some challenges to addressing fuel prices.
She says if the provincial sales tax drops too low, then the back-stop comes into play and federal carbon taxes are then applied to home heating fuel. “We don’t want to cause those unintended consequences,” says Coady.
The province is looking at other ways to help people with the cost of living.
Meanwhile, another 11 cent a litre federal carbon tax is due to come into effect April 1, prompting Opposition Finance critic Tony Wakeham to call on Siobhan Coady to seek a deferral, but Coady says it’s not as simple as that.
Fuel prices saw a big increase this morning, with consumers spending an extra 14.4 cents a litre for gas, 24.8 cents a litre for diesel and 20.19 cents a litre for furnace oil.
The provincial Finance Minister and Deputy Premier says Ottawa has determined that carbon taxes be implemented to combat climate change.
Coady says the federal government policy was implemented to address climate change, but all provinces are now seeking some form of tax relief for citizens hit hard by the current circumstances. She says the federal government should consider what its doing around carbon tax at this particular time.