|
Opposition Leader Gerry Reid says it is now time for the provincial
government to reduce or cap taxes on gasoline by either removing
government’s portion of the HST or lowering the provincial gas tax in light
of the record price of petroleum products in this province. Yesterday, the
Nova Scotia Government stated that they will be looking at lowering gas
taxes in that province in response to growing pressure to help consumers.
"I called upon government to cap or lower taxes on gasoline two months ago,"
said Mr. Reid. "Minister Sullivan and the Premier continuously dismiss this
suggestion, even though government is making record profits from increased
tax revenues and increased oil royalties from our offshore. Now that other
provincial governments are seriously considering the lowering of gas taxes
in their provinces, why is our provincial government still focused on taking
every single cent possible from the pockets of Newfoundlanders and
Labradorians?"
It is predicted that the provincial government will make an extra $400
million in profits this year from increased offshore oil royalties. In
addition, the province is collecting more money through gasoline taxes.
Currently, over 39 cents of the cost per litre of gasoline is direct tax. Of
this amount, the province collects a direct gasoline tax of 16.5 cents per
litre and a portion of the 15 per cent HST that is applied to pump prices.
"While a longer-term solution needs to be developed to help reduce energy
consumption, a short-term immediate action plan is required. There is no
excuse for Minister Sullivan not to act and provide relief to the people of
this province. Gasoline tax revenues come directly from the pockets of
ordinary Newfoundlanders and Labradorians, many of whom are struggling to
find enough money to fill up their tanks. Why won’t this government show
some compassion, listen to the people, and cap or reduce taxes. If other
provincial governments are considering this move, why can’t the same benefit
be passed on to the people of this province?"
|