Official Hansard
Mr. Speaker, I am pleased to rise today to speak to Bill C-38 and to the very real issue at the heart of this legislation, which is affordability. For more than a generation, tax policy has been designed to effect social policy. Taxes have been designed to curb our citizens’ behaviour, not to benefit taxpayers. Tax policy has not been developed for what is best for the long-term future of Canadians. When taxes interfere with people’s way of life, making it cost more to buy food, get to work or go to medical appointments, there is something wrong with our tax system. For families in Alberta and right across Canada, affordability is not an abstract economic concept. It is the price at the gas pump. It is the grocery store bill, the cost of getting to work, the cost of moving a truckload of farm products. It is the cost of building a home. For many Albertans, it is simply a question of whether they can afford to drive the distances that life in a large, rural and resource-producing province requires. That is why the government’s decision to extend the federal fuel excise tax suspension matters. However, it is also why we have to look carefully at how we got here and what happens next. Conservatives have been raising this issue for months in the House. During question period back in April, actually on my birthday, I asked the question as to whether the government would extend the suspension of the excise tax until the end of the year. The Minister of Emergency Management and Community Resilience refused to commit to any relief for Canadians beyond September 7. If the Liberals had dealt with the issue back in the spring, we would not be here today having the same conversation. Are we going to have to do this again next January, when the government realizes the suspension is not enough again? I think all members would appreciate not having to repeat the same debate a third time and would ask the Liberals to consider extending this suspension until Canada Day. We pushed the Liberals to cut the tax. Then we pushed them to stop taking that relief away, but it needs to go further. Mind you, our proposal in April went beyond just the excise tax. We also called for the suspension of the GST on gasoline and diesel, the removal of costs associated with the clean fuel regulations, and the elimination of the industrial carbon tax. The government, however, chose a much narrower measure, by suspending only the federal excise tax. Its own figures estimate that this measure would provide more than $2.4 billion in relief. Now, after that temporary measure was scheduled to expire, the government is looking to extend it. Bill C-38 would keep the federal excise tax suspended through to January 2027, and in February and March the tax would return at half the regular rate. On April 1, April Fool’s Day next year, the regular federal excise tax rate would return. It is not a joke. That means about 10¢ per litre on gasoline and 4¢ on diesel. If lowering the fuel tax provides significant relief today, why should Canadians automatically face the full tax again on April 1? Why does the government continue to ignore Canadians who are in desperate need of help? As we debate Bill C-38, I want to take this opportunity to speak about the issue that touches every Canadian, every working family and every business in this country. As the only chartered professional accountant with tax experience in the House of Commons, I understand both the importance and the complexity of the different layers Canadians have to deal with in tax. Canada’s tax system has become far too complicated. For too many Canadians, understanding their tax obligation requires navigating a maze of rules, exemptions, credits, deductions and administrative requirements. That complexity comes at a cost. It consumes valuable time and resources for families and businesses. It creates uncertainty for those trying to invest in and plan for the future, and it makes it harder for Canadians to understand how much they are actually paying in tax. A reform of our tax system is not simply about changing the tax rate. It is about building a system that is simpler, more transparent and more fair, one that Canadians can understand and businesses can navigate with confidence. Canadian workers and businesses deserve a tax system that rewards hard work rather than making it harder to get ahead. Small businesses, in particular, need a system that allows them to spend less time dealing with paperwork and more time creating jobs, investing in their communities and growing their businesses. Our tax system should work for Canadians, not the other way around. What is most frustrating with the bill is that the government originally described it as temporary relief. Now it is extending that relief, and I would not be surprised if next year we are back, having to extend it again. The original suspension was supposed to end two weeks ago. Instead, the government is now rushing to extend it through the end of next January and will then phase the tax back in the following two months. That change reflects the economic circumstances Canadians are currently facing. It also reflects the fact that the affordability problem did not disappear when the temporary measure was scheduled to expire, two weeks ago. The government has recognized that, and I think Canadians will thank them for it. The question now is whether the extension is sufficient. For many Canadians, particularly those who drive long distances or operate businesses dependent on transportation, the answer will depend on what happens after March 31, because the reality of fuel costs in Canada will not suddenly disappear on April 1. We also need to recognize the role fuel plays in Canada’s competitiveness. Transportation is not an optional part of our economy. It is fundamental to it. When the costs of moving goods rise, businesses face higher operating costs. When transportation costs rise, competitiveness suffers. Regardless of the current political climate, we are still very much competing with the United States, which does not have the layers of taxes and bureaucracy that we do here at home. This is just one more chip away at our global competitiveness, and Canadian businesses are suffering as a result. Another idea we may want to consider is permanently removing the excise tax on Canadian petroleum products to benefit Canadian companies. That is why fuel tax policy is about more than what someone sees at the gas pump. It is also about the cost of moving the Canadian economy. The House should not stop asking questions simply because the government has taken one step. We should be asking what happens next. We should be asking what relief will continue. We should ask how federal tax policies affect the cost of transportation. We should ask how those costs move through the supply chains, and we should ask whether Canadians can realistically afford this tax’s return in April 2027. Conservatives have been raising these issues for months. The government has now extended a measure that it originally described as temporary, and that is why Bill C-38 matters, but this debate should not end with the passage of the temporary extension. The bill is needed. No one is doubting that. Canadians need this relief at the pumps, but there is more we can do. There is more we need to do. We need to continue pushing to remove all federal taxes on gas and diesel until at least Canada Day next year; we need to permanently scrap the clean fuel regulations, and we need to remove the industrial carbon tax, so Canadians can save approximately 25¢ per litre. On this side of the House, we are committed to continuing this fight, and we hope to continue making measurable progress. At the end of the day, the bill would be good for Canadians, and for that reason, I will be supporting it. Canadians deserve an economy where working, producing, transporting and building are affordable.
