Over the past 24 months, taxpayers filling up two cars once a week have saved more than $1,000 thanks to Furey’s gas tax cut. Pictured: Newfoundland and Labrador Premier Andrew Furey. Photo Credit: Andrew Furey/X.
One hundred and fifty million dollars.
That’s how much money Premier Andrew Furey’s nearly three years of gas tax cuts will have saved Newfoundland and Labrador taxpayers by next winter.
Furey cut the gas tax by 8.05 cents per litre in June 2022.
The move has been meaningful at kitchen tables across the province.
The typical two-car family filling up once a week has saved more than $1,000 at the pumps since Furey’s gas tax cut was put in place two years ago. And, thanks to the Furey government’s plan to extend the cut through next March, families can expect to save another $400.
When the Furey government introduced its gas tax cut in June 2022, the finance ministry said the temporary seven-month cut would leave about $30 million in the pockets of Newfoundland and Labrador taxpayers. With that period now stretched out to nearly three years, Newfoundland and Labrador taxpayers are set to enjoy savings of more than $150 million.
Furey’s gas tax cut may seem like yesterday’s news given that it’s been in place for nearly two years. But the tax cut means Newfoundlanders and Labradorians have the second lowest gas tax burden in Canada, behind only Manitobans.
And Furey’s gas tax cut has never been more important as the Trudeau government keeps hammering families with higher costs.
Since Furey cut the gas tax in June 2022, the Trudeau government has raised the carbon tax twice, adding roughly six cents per litre to the cost at the pump. Furey’s cut has helped struggling taxpayers blunt the impact of Trudeau’s tax hikes when filling up to get to work, take the kids to school or head to hockey practice.
And that’s part of the plan.
Furey recognizes “the federal carbon tax is not the appropriate instrument to mitigate climate change” and is “very punishing” for hardworking families. His government’s gas tax cut has helped offset its negative impact on Newfoundlanders and Labradorians.
To Furey’s credit, he has been quite vocal about the damage of the costly federal carbon tax.
Not long ago, Furey said of the federal carbon tax, “the fundamental premise on which the whole thing is based, is flawed.” He noted that Newfoundlanders and Labradorians can’t stop driving or heating their homes just because the federal government is making it more expensive to do so.
Newfoundlanders and Labradorians are in the minority in terms of saving at the gas pumps. Only Manitobans and Ontarians also currently enjoy provincial gas tax relief.
More than one million Canadians are now working two jobs just to make ends meet. Fifty per cent of taxpayers across the country say they’re $200 away from not being able to pay their bills. Ottawa has been tone deaf by imposing carbon tax hikes and Furey is fighting to defend Newfoundlanders and Labradorians from Trudeau’s reckless tax-and-spend antics.
Over the past 24 months, taxpayers filling up two cars once a week have saved more than $1,000 thanks to Furey’s gas tax cut. That’s real money that pays for a month’s worth of groceries for a family of four.
There’s more Furey can do to lower costs for taxpayers. He should look at putting his $186 million a year of corporate welfare on the chopping block to deliver more relief for Newfoundland and Labrador families through lower income taxes or a sales tax cut.
But Furey deserves credit for implementing his bold gas tax cut for two whole years, with several more months to go.
It’s good that Furey intends to keep up his fight for affordability by extending the gas tax cut until early 2025. And before that temporary gas tax cut expires, taxpayers will once again be calling on Furey to deliver yet another extension.
Jay Goldberg is the Ontario Director at the Canadian Taxpayers Federation. He previously served as a policy fellow at the Munk School of Public Policy and Global Affairs. Jay holds a Ph.D. in Political Science from the University of Toronto.
