Taxpayers Federation calls for a freeze on carbon tax and other taxes

Monday, March 30, 2020

• Tax relief must form a key part of governments’ economic rescue efforts
• Tax hikes should be postponed for the duration of coronavirus crisis, including the planned federal carbon tax hike scheduled for April 1
• Federal parliamentarians should also donate pay hike coming into effect for April 1

OTTAWA, ON: The Canadian Taxpayers Federation today called on governments across Canada to postpone any planned tax hikes for the duration of the coronavirus crisis, including the planned April 1 increase in the federal carbon tax.

“This is an unprecedented global crisis, and the immediate focus of governments is ensuring the health and safety of Canadians,” said CTF Federal Director Aaron Wudrick. “As governments work to help Canadians get through economic challenges, minimizing the tax burden must be a central element.

“The federal carbon tax is scheduled to go up on Wednesday, but this is no time to increase any tax. Ottawa needs to hit pause on the carbon tax now.”

The federal carbon tax is set to rise from 4.4 cents per litre of gasoline to 6.6 cents on April 1. British Columbia has already paused its planned carbon tax increase.

“With many Canadian businesses shuttered and millions of people losing income, the last thing Canadians need right now are higher taxes driving up the costs they still face,” said Wudrick. “Speed is of the essence, and tax relief has the clear benefit of being simple and instantaneous.”

Wudrick also called on federal parliamentarians to donate their scheduled pay increase on April 1.

“I am sure all parliamentarians would agree that this is the wrong time for politicians to get a salary bump when millions of Canadians are struggling,” said Wudrick.