MNI: Canada Suspending Federal Gas Tax Until Labour Day

Prime Minister Mark Carney said Tuesday the federal government is suspending the national fuel sales tax starting next week and until Labour Day, calling it an affordability measure to deal with higher gasoline costs brought on by the Iran conflict. 

"Today’s cut to the Fuel Excise Tax is a responsible, temporary measure consistent with what it
takes to build a stronger economy with sound fiscal management," Carney said. "Responsible budgeting keeps your interest rates down, and it ensures we can protect the programs that make life
more affordable for those who most need it – childcare, dental care, pharmacare, and school food programs." The federal fiscal year began April 1 and the government is soon expected to provide an update to the full fiscal plan it presented last fall, which broke its previous fiscal anchor. 

The move is expected to reduce bills at the gas station by 10 cents per litre on regular gasoline and 4 cents on diesel. Carney's announcement didn't say what the measure is expected to cost. (See: MNI INTERVIEW:Canada Has Some Self-Inflicted Inflation-Wilkins)