B.C. NDP campaign to scrap 10-cent-a-litre fuel tax cut for gasoline and diesel for five months

The Story

The B.C. NDP says its campaign will scrap a 10-cent-a-litre reduction to the provincial motor fuel tax on gasoline and diesel for five months, with the change set to run until April. The government estimates the measure will cost $280 million over the five-month period.

The announcement represents a shift from the NDP’s earlier responses to calls for lowering or eliminating the provincial fuel tax. Energy Minister Adrian Dix had previously rejected proposals to reduce the same fuel tax, saying “No,” in a March response to a suggestion from the Canadian Taxpayers Federation.

The NDP’s stated rationale for keeping the tax has been that fuel tax revenues support programs including health care, roads, education and infrastructure, while global supply pressures are responsible for rising fuel prices. Dix also said the NDP is “focused on keeping things affordable for people,” while noting the revenues help fund services.

NDP leader David Eby said Thursday that “We will not be paying for this commitment, or balancing the budget, on the backs of everyday British Columbians.” The announcement also estimates a $672-million annual commitment if extended beyond the five-month period.

The NDP’s fuel tax plan comes alongside a separate Conservative pledge announced one day earlier to cut the 10 per cent provincial sales tax on Canadian alcohol, which the NDP described as fiscally irresponsible. The Conservative promise was described as $250 million, while the NDP’s fuel tax commitment was described as more than twice as expensive.

The NDP plan includes details affecting Metro Vancouver transit funding. The province’s fuel tax is described as having only a limited general-revenue component in Metro Vancouver—about 1.75 cents a litre—with most of it supporting TransLink. In that context, the measure would be expected to create 8.25 cents a litre in lost revenue for TransLink-related services, and the NDP says its plan includes covering six cents of the TransLink tax so TransLink’s revenues do not fall.

The government’s announcement does not describe how the cost would balance for TransLink or for other provincial transit providers outside Metro Vancouver beyond the figures included in the plan description. It also does not indicate whether the fuel tax cut would be extended past April.