OTTAWA — Conservatives are urging the Liberal government to extend its temporary federal fuel tax holiday beyond Labour Day, arguing higher gasoline and diesel prices continue to drive inflation and strain household budgets.In a statement released Wednesday, the new Conservative finance critic Michael Chong said the government's suspension of the federal excise tax, worth 10 cents per litre on gasoline and four cents per litre on diesel, should remain in place through the end of the year.“Canadians need relief from ongoing high gas and diesel prices, especially as the OECD pointed out in its recent statistical release that energy and food prices are the primary drivers of inflation in Canada,” Chong said.The temporary excise tax holiday is scheduled to expire after Labour Day.Chong cited a Leger poll commissioned by the Canadian Taxpayers Federation that found 63% of Canadians oppose ending the fuel tax suspension, including 43% who strongly oppose restoring the tax in September.According to the party, opposition to ending the tax holiday rises to 72% among seniors, 68% among women and 65% among Canadians between the ages of 35 and 54..Beyond extending the excise tax holiday, the Conservatives are also calling on the government to remove the GST from gasoline and diesel and eliminate the federal Clean Fuel Regulations.“Conservatives call on the Carney government to not only extend the excise tax holiday for the rest of the year, but also remove the GST on gas and diesel, saving drivers up to 25 cents a litre,” Chong said.He argued the measures would reduce costs beyond the fuel pump by lowering transportation costs throughout the economy.“Cutting the taxes on fuel and eliminating regulation won’t just lower prices at the pump, but make the cost of everything shipped by a truck or train that uses fuel, from food to homebuilding materials, more affordable,” Chong said.The Conservatives estimate extending the tax measures would save motorists about $20 per fill-up and roughly $500 for a family of four through the remainder of the year.The Canadian Taxpayers Federation also called on the government to make the tax relief permanent.“Carney needs to listen to Canadians and confirm that he will not be hiking gas taxes in September,” CTF president Franco Terrazzano said.“Carney needs to permanently cut the gas tax because Canadians can't afford to pay more to fuel up their vehicles and also pay higher prices for everything that is trucked to store shelves.”“Cutting taxes makes life more affordable and the government needs to cut spending so it can provide permanent relief without ballooning the debt.”The Conservative Party also renewed its call to eliminate the Clean Fuel Regulations, arguing they currently add about seven cents per litre to fuel prices and will increase costs further over the coming years.The federal government introduced the temporary fuel excise tax holiday earlier this year as motorists faced rising prices driven by instability in global energy markets.The measure is currently scheduled to end after Labour Day which is on September 7.
