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What would be better than reducing the gas tax? (sh.itjust.works)
submitted 6 months ago by to c/canada@lemmy.ca
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Carney and Co are lowering gas/diesel taxes:

The move means that the cost of gas will drop by 10 cents on a litre of gasoline and four cents per litre of diesel starting on Monday and lasting until Labour Day. The fuel tax holiday, which Carney said would also see the four cent per litre excise tax removed on aviation fuel, is expected to cost an estimated $2.4 billion.

One of the aims is to improve the affordability hit we're taking because of the US/Israel war with Iraq.

Does the tax holiday make sense to you? Could it be done better?

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[–] 2 points 6 months ago* (last edited 6 months ago) (2 children)

The country is very car-dependent.

The removal of the tax provides immediate relief. That said they could achieve even better result with a price control with the same to avoid firms jacking up prices to compensate.

With that said this should be coupled with immediate subsidy and price reductions in public transit in metro areas. Along with removal of RTO mandates for pub employees. Among other practical steps. The fact there's nothing abt that tell is abt their priorities.

Longer term there's a lot more to be done, including appropriating those windfall O&G profits.

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  • [–] [S] 3 points 6 months ago (1 child)

    The removal of the tax provides immediate relief.

    It doesn't provide direct relief to people without cars.

    Fuel prices have already increased more than the amount of the tax holiday, so other goods will continue to increase in price.

    The other measures make sense.

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  • [–] 1 point 6 months ago

    It doesn’t provide direct relief to people without cars.

    For sure. Hence mentioning car-dependency. I don't drive but everywhere outside of metro areas is car-country and there's no alternative.

    Either way a shortage is impending and distributing based on price means the wealthier get more for often less than necessary purposes. Which is why I'd look for a different distribution mechanism, a need-based mechanism. E.g. rural transportation and farming should get more/cheap fuel, F150/RAM1500 commuters in the GTA should get less/more expensive fuel.

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