The Canadian Taxpayers Federation (CTF) is telling the Canadian government to follow the lead of other countries that have lowered taxes to combat inflation.
“Canadians are fueling up at the pumps and then worrying about whether they have enough left over for ground beef at the grocery store,” said CTF federal director Franco Terrazzano in a press release on Wednesday. “Inflation is a key economic issue facing Canadian families and our politicians need to wake up and provide some relief.”
Canada’s inflation rate for December was up 4.8% compared to last year, the highest the country has seen since 1991.
The federal carbon tax on gasoline has increased twice during the COVID-19 pandemic and is scheduled to go up again in April to 11 cents per litre. Prime Minister Justin Trudeau promised to increase the carbon tax to almost 40 cents per litre of gas by 2030 and implement a second carbon tax through fuel regulations that will add an additional 11 cents per litre.
Canadian workers making more than $64,900 per year will see their tax bills increase by $396 this year. The Canadian government is set to increase alcohol taxes for the third time during the pandemic on April 1.
The CTF said that while Canada is raising taxes during the pandemic, other countries have provided relief. For example, South Korea reduced gas taxes for six months while eleven American states cut income or business tax rates.
Terrazzano said high taxes and rising prices are “making the tough times tougher in Canada.”
“While other countries are cutting taxes, all we get from Canadian politicians are higher tax bills,” said Terrazzano. “It’s time for Ottawa to provide some tax relief and make life in Canada a little more affordable.”
The current inflation rate has led to gas prices in Canada rising more than 33% compared to last year’s figures. Inflation has contributed to food prices going up by more than 5%.
Conservative leader Erin O’Toole called on the Canadian government Wednesday to take action on inflation.
“The cost of living is skyrocketing across Canada,” said O’Toole. “The Trudeau Liberals need to realize the impact this is having on you and your wallet.”