OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to provide tax relief and rein in spending to ease the rising cost of living following today’s Statistics Canada report showing consumer prices increased by 5.1 per cent.
“Other countries are providing relief, but Ottawa is sticking us with higher tax bills,” said Franco Terrazzano, Federal Director of the CTF. “Prime Minister Justin Trudeau could immediately make life a little more affordable by reducing taxes.”
Consumer prices increased by 5.1 per cent year over year, according to Statistics Canada.
Taxes make up 31 to 42 per cent of the price of fuel, depending on the province. The federal carbon tax is increasing for the third time during the pandemic on April 1 to 11 cents per litre of gas. Trudeau said he will increase the carbon tax to nearly 40 cents per litre of gas by 2030 and impose a second carbon tax through fuel regulations that could add an additional 11 cents per litre.
Canadian workers making more than $64,900 will see their payroll taxes increase by $396 this year.
Alcohol taxes are also set to increase for the third time during the pandemic in April.
South Korea, Spain, Italy, France, the United Kingdom, Poland, Sri Lanka, India, New Jersey, along with twenty-five Indian states and union territories are cutting taxes.
High government spending is a factor causing inflation and the Parliamentary Budget Officer has warned that it’s time to control expenditures.
“The government’s own fiscal guardrails indicate that stimulus spending should be wound down by the end of fiscal year 2021-22,” said Parliamentary Budget Officer Yves Giroux. “It appears to me that the rationale for the additional spending initially set aside as ‘stimulus’ no longer exists.”