Langley Chamber Calls for 30 cent/litre Break of Gas Taxes
Langley Chamber Calls for 30 cent/litre Break of Gas Taxes
The Greater Langley Chamber of Commerce is calling on the provincial and federal governments to take immediate action on high fuel prices by suspending nearly 30 cents per litre in fuel taxes in an effort to help businesses and families facing persistent inflation.
As inflation hits a nearly 40-year high of 7.7% in Canada, fuel prices in the Lower Mainland have been pushed up 25-30% this year, averaging over $2.10 per litre for gasoline. Of that price, the federal excise tax represents 10 cents/litre and the provincial non-Translink motor fuel tax is 8.5 cents/litre, with the 5% GST then applied to the after-tax price at the pump. The Langley Chamber estimates that at current prices these three taxes cost consumers 29.5 cents per litre and suspending them specifically would save nearly $15 per fill-up for the average family car.
“Tackling soaring fuel costs is ideal because they tend to get embedded into the price of everything at each stage across the supply chain. Reducing the cost of fuel at the pump would give businesses and families a bit of breathing room, and if a Langley family can save $60 a month on filling the average car, that money can be better spent supporting our local business community as opposed to going to soaring energy costs," says Cory Redekop, CEO of the Greater Langley Chamber of Commerce.
The Langley Chamber has contacted Langley's provincial MLAs and federal MPs with this recommendation, as well as local and region media to highlight the need for action on high fuel costs.
Does your business have thoughts on high gas prices? Let us know!
See the media coverage of our advocacy efforts:
Read our op-ed below:
Time for Action on Gas Taxes
Seemingly with each passing day there another report on how inflation and the rising cost of living is impacting people and families. As the voice of Langley business, representing nearly 1,000 local companies, we hear regularly that the same inflationary pressures are impacting Langley businesses and making it harder and harder for them to make a go of it. As inflation hits a four-decade high of 7.7%, driven in part by surging fuel prices, it is now time for government to take action by suspending excise and sales taxes on gasoline.
From labour and overhead to direct inputs like ingredients, equipment and materials, costs are climbing for nearly everything that goes into running a business. When, initially, governments and economists predicted this inflation would be ‘transitory’, many businesses were willing to weather the storm and try to make it to the other side. Of course, this is something business has gotten very good at over the past two years.
However, with inflation only accelerating it is due time for governments to provide relief for businesses, families and residents from the soaring cost of everything, and the action we need now is to address the spiraling cost of gas and fuel.
Fuel costs are an ideal target because they get embedded into the cost of everything in the economy, and the increases gets stacked and multiplied at each link in the supply chain. Built into the rising price of your morning donut, for example, is the fuel costs of the trucker moving the raw ingredients, the workers heading to the bakery, and the delivery driver stocking the grocery store. Lowering this vital input cost at the source will help reduce the pressure on businesses to increase prices and thus raise inflation across the economy.
Currently, every litre of gasoline purchased is subject to a series of taxes from regional, provincial and federal governments. If the federal government paused the federal excise tax (10 cents/litre) and the GST on fuel (5%), for example, that would save motorists roughly 20 cents per litre on every fill-up. Should the province join in by suspending its non-Translink motor fuel tax, that would push the savings to nearly 30 cents a litre or about $60 a month in savings on the filling of an average family car.
We recognize that suspending gas taxes is not – and should not - be a permanent solution. Beyond gas taxes, additional targeted supports to low-income individuals and families should be pursued as a way of assisting those most impacted by rising costs. But as we enter a summer of further record-breaking prices at the pump and everywhere else, quick action is needed where many residents and businesses are feeling it the most.
- Greater Langley Chamber of Commerce