Future cuts to the provincial gas tax will happen if oil prices exceed $89 per barrel, according to new provincial government legislation.
On Monday, Finance Minister Craig Pardy announced that they will be cutting the provincial tax on gas and diesel to zero.
That change, which will happen on December 1st, will run until at least the end of March.
Whether the break is extended depends on new legislation tabled yesterday, which states that the tax will come off if the price of oil is higher than $89 per barrel. If that price is less, the tax is back on.
(VOCM News)
Minister Pardy says the tax situation will be evaluated quarterly.
He says those new quarters will begin on the first of January, April, June, and October. The determination on the gas tax will be made on the 16th day of the prior month.
Opposition Leader John Hogan (VOCM News)
Opposition Leader John Hogan is still pushing for the tax cut to be made permanent.
He says revenues from oil are continuing to go up, and he believes the way the system is structured will add to uncertainty for people.
