Alberta to suspend provincial fuel tax collection
The province of Canada will provide incentives to help consumers shocked by high prices.
Premier Alberta Jason Kenney announced the suspension of the April 1 provincial fuel tax of 13 cents per liter. The tax on marked gasoline and diesel of 4 cents per liter will also not be collected for some time.
"The people of Alberta told us they needed help with rising costs. We heard them loud and clear," Kenney said at the press conference.
The provincial fuel tax levy will resume when the price of WTI (a brand of oil produced in Texas) falls below $80 USD. The government will consider reinstating the levy, including in stages, on a quarterly basis. The gasoline tax is not expected to be reinstated until at least July 1. If the pause in the fuel tax levy is in effect for the entire fiscal year, the cost would be about $1.3 billion, Treasury Secretary Travis Taves said at a news conference.
At the same time, despite much public discontent, the Canadian government is still not going to repeal the increase to 11% of the federal carbon tax as of April 1.
In addition to suspending fuel tax collections, the Alberta government will also provide a rebate on electricity to help families, farms and small businesses in the province with high bills. This program will cost the province $280 million CAD, as it is estimated that more than 1 million homes, farms and businesses will receive retroactive rebates of $150 CAD for January, February and March. Exact details, including the timing of the rebates will be announced at a later date.
