Ottawa’s parliamentary budget officer says the federal gas tax pause will save more to higher-income families than lower-income households.
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Ottawa’s parliamentary budget officer says the federal fuel-tax pause is providing a larger break at the pumps for higher-income households than for those with lower incomes.
The federal government temporarily suspended the federal excise tax on gasoline, diesel and jet fuel in April, and later announced it would extend that pause into 2027.
In a new report, the parliamentary budget officer estimates the total pause will save the average family $276 over the period it remains in place, while households in higher tax brackets see greater savings.
The report also finds that families in the lowest income quintile can expect to save just about half the average.
A spokesperson for Finance Minister François-Philippe Champagne said the fuel tax pause is a blanket measure that delivers savings to all Canadians based on how much they drive.
The spokesperson added that initiatives such as the Groceries and Essentials Benefit are intended to help low-income families.
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