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Combatting the Cost-of-Living

BACKGROUNDER:
AFFORDABILE ESSENTIALS: COST-OF-LIVING RESULTS

Policy Commitments

Kevin Falcon and BC United would act immediately in these four areas:

  • End the Pain at the Pumps: People need to get to and from work and school, but they’re stretched thin. They need a break from the pain at the pumps. Kevin Falcon and BC United will permanently eliminate the provincial fuel tax, saving drivers up to 15 cents per litre on gasoline and diesel.

  • Cancel Eby’s Carbon Tax Hikes: Kevin Falcon and A BC United government would end David Eby’s planned carbon tax hikes, recognizing British Columbians can’t afford further NDP tax hikes during a cost-of-living crisis.

  • Provide Affordable Home Heating: Heating our homes is essential, and budgets are tighter than ever. Kevin Falcon and BC United will immediately remove the carbon tax from all home heating fuels to ensure a level playing field with other provinces.

  • Lower Food Costs: Groceries have never been more expensive, and British Columbians need relief. Kevin Falcon and BC United will remove the carbon tax from on-farm fuel use, reducing operational costs for farmers. In conjunction with the elimination of the provincial fuel tax, this will make groceries more affordable for everyone.

Background

Gas Tax Commitment: Permanently eliminate parts of the provincial fuel tax, specifically the Provincial Motor Fuel Tax and Dedicated Motor Fuel Tax (BCTFA). This removal will translate to savings for both gasoline and diesel consumers across British Columbia between $0.085 and $0.150. Recovery of British Columbia Transportation Financing Authority (BCTFA) funding would come from general revenue.

Breakdown of Provincial Fuel Taxes

Revenue Impacts (in millions) of BC United’s Proposed Changes:

Data Sources and References:

  • Home heating (residential buildings) and agricultural carbon tax relief are estimated by projecting the percentage of each sector’s emissions as a percentage of total carbon tax revenue.
  • Information on the proposed freeze in carbon tax is sourced from the Budget 2023.
  • Gas tax rate changes and implications are based on the Budget 2023.