The Truth About Gas Tax Holiday In Canada You Need To Know
Is Canada going to follow the USA on Gas Tax Holiday?
Gas Tax Holiday is a scheme currently running in 5 provinces in the U.S. as a respite from the surging fuel costs. Under this scheme, state tax on cars and fuel has been withdrawn from June 1 to December 31.
You should get in touch with International Tax Consultants in Toronto for the latest updates on the Gas Tax Holiday bill. Here is the gist of the bill in a nutshell.
What is Gas Tax Holiday?
The new Biden federal policy has postponed the fuel tax in 5 different provinces for a period of seven months. In response to the surge in fuel prices, the city government of these provinces has taken efforts to repeal the state tax on fuel.
At present, the gas tax holiday measure only applies to the following regions. Those are:
- New York
- Maryland
- Georgia
- Florida
- Connecticut
The average American driver may save up to $2.75 on each 15-gallon fill-up. Mathematically, if you have availed of the benefits of the scheme, you could have saved a little more than $40 if you had restocked once a week. You can contact a Personal Tax consultancy service in Toronto for the latest report on this matter.
What is Canada’s position in regards to the Gas Tax Holiday?
According to a press release from the research firm Government Analytics Inc., a hypothetical nationwide gas tax holiday in Canada might cost as much as $15.2 billion if all authorities agreed to put it into effect for a single year.
Carbon pricing, excise taxes, and provincial and territorial levies would all be suspended for a year as part of the $15.2 billion price tag.
However, the Canadian Government has made it clear that it is not going to follow the same trails of the Gas Tax Holiday as implemented in the U.S.
What is the next step for Canada from here on?
Canada is looking to increase the supply of fuel to stabilize the sharp surge in gasoline prices. Few other benefits such as rebates on GST, Canada Child Benefit, and Canada Worker Benefit have been implemented to help taxpaying citizens.
However, there are pressures from all directions to lift carbon prices and reduce GST on fuel to face the crisis. The Canadian Government has not ruled anything off the table, yet they are not in favor of implementing something like a Gas Tax Holiday in Canada as of now.
For the recent developments on this matter, get in touch with the best Tax Consultants in Toronto.
