With the new year now underway, many Alberta families and businesses in communities large and small continue to struggle with the ongoing cost of living crisis.
Whether the crisis will end or at least moderate in 2024 remains an open question. What is known is that the Smith government re-imposing its fuel tax at the pumps isn’t great news for residents trying to make ends meet.
For his part, Minister of Finance Nate Horner says the UCP government will make good use of the nine cents a litre tax on gas and diesel Albertans will be charged every time they visit the pumps.
“Alberta’s fuel tax is a predictable source of provincial revenue, helping to offset the volatility of other resource sources,” said Horner. “As a stable component of Alberta’s revenue mix, the fuel tax helps fund program and services Albertans rely on while maintaining our significant tax advantage.”
Not surprisingly, not everyone is pleased with the reintroduction of what amounts to a tax on transportation for almost every person using a car or truck in Alberta.
“With the Trudeau government hiking its federal carbon tax in a few weeks and with so many still people struggling to afford food and home heating, increasing the Alberta fuel tax is the wrong way for the Smith government to go,” said Kris Sims, Canadian Taxpayers’ Foundation Alberta director.
“It’s mind-boggling that she (Danielle Smith) would hike the fuel tax back up now.”
MLA Kathleen Ganley, NDP energy and climate critic, says bringing the fuel tax back at this time is bad news for the province and its residents.
“The government ought to be focused on the fact that the majority of the population is struggling to meet their basic needs,” said Ganley.
With the Smith government projecting a budget surplus of more than $5.4 billion in 2024, many families and businesses might be forgiven for calling the return of the provincial fuel tax an unnecessary and unwanted financial burden at a time when every dollar counts.
Dan Singleton is an editor with the Albertan.
