Martin cool to idea of cutting federal gas tax
Prime Minister Paul Martin is cool to the idea of cutting federal taxes on gasoline despite surging prices at the pump.
"The federal government does not make money from increasing gas prices," he told reporters Monday in Edmonton.
The federal excise tax is fixed, and the GST revenue from gasoline fluctuates, falling with higher prices because consumption goes down, he said.
"Any calculation done of the federal government's bottom line shows there is not any undue benefit occurring in that way."
In addition, Martin said Canadians liked the federal government's plan of directing gas tax revenue to federal and provincial governments to fund infrastructure and public transit projects.
Martin is expected to sign a $150-million gas tax deal with Saskatchewan during his current western swing, which includes a three-day federal Liberal caucus meeting in Regina starting Tuesday and a two-day cabinet meeting in Winnipeg later this week.
The prime minister made the statements at a time when Alberta appears set for a provincial budget surplus in the billions because of surging oil prices, and Newfoundlanders are being hit with an overnight 10-cent per litre hike in the price of gas.
"Unreal. Just can't believe this," said one Newfoundland gas customer on Monday. The price hit $1.17 per litre.More
Prime Minister Paul Martin is cool to the idea of cutting federal taxes on gasoline despite surging prices at the pump.
"The federal government does not make money from increasing gas prices," he told reporters Monday in Edmonton.
The federal excise tax is fixed, and the GST revenue from gasoline fluctuates, falling with higher prices because consumption goes down, he said.
"Any calculation done of the federal government's bottom line shows there is not any undue benefit occurring in that way."
In addition, Martin said Canadians liked the federal government's plan of directing gas tax revenue to federal and provincial governments to fund infrastructure and public transit projects.
Martin is expected to sign a $150-million gas tax deal with Saskatchewan during his current western swing, which includes a three-day federal Liberal caucus meeting in Regina starting Tuesday and a two-day cabinet meeting in Winnipeg later this week.
The prime minister made the statements at a time when Alberta appears set for a provincial budget surplus in the billions because of surging oil prices, and Newfoundlanders are being hit with an overnight 10-cent per litre hike in the price of gas.
"Unreal. Just can't believe this," said one Newfoundland gas customer on Monday. The price hit $1.17 per litre.More
