Opposition parties call on Houston government to cut gas tax, even temporarily

Gas prices continue to fuel record inflation, and while other provinces like Ontario and Newfoundland and Labrador have committed to cutting provincial gas taxes, Nova Scotia Premier Tim Houston won't budge on the issue.

Both the Liberal and NDP opposition parties are calling on the Progressive Conservative government to follow the lead of other provinces and temporarily cut the fuel fee.

"I think that we remain the only province in Canada that has done nothing to address the cost of living crisis and the inflationary period that we are in," said N..S. NDP leader Claudia Chender.

Chender was named leader of the provincial NDP on the weekend, and in her speech at the leadership convention, she addressed the issue of affordability and called out the Houston government.

“Life is getting harder for families across the province, from healthcare to housing, and the rising cost of living. Yet, almost a year after being elected, the Houston government is not taking the action needed to help Nova Scotians,” said Chender.

The NDP is in favour of giving all Nova Scotia families who earn less than $70,000 a cheque for $500.00 to immediately help with the rising cost of living.

“Five hundred dollars is a few tanks of gas, a few grocery carts of food, part of a month's rent, or a few power bills. That’s real help that people can count on,” said Chender.

Houston says the province is bringing forward long-term solutions rather than quick fixes or band-aid solutions.

"That's why we are taking the programs around the seniors care grant, around the family benefits, around the child care benefits, all these types of things are longer-term initiatives,” said Houston.

Chender says the list of supports Houston is alluding to is old news.

"Everything that's coming forward from the government, the senior’s grant, child care, the child benefit, that was all in the budget,” said Chender.

Liberal MLA and community services critic Fred Tilley echoed Chender’s comments.

“Those programs have been in place, they were in place during the budget process and so we knew about those, but right now people are struggling,” said Tilley.

As the inflation rate soars to sky-high levels, the liberals say Houston is sidestepping the problem and has committed to any sensible relief programming.

“When we look at the gas tax there's an opportunity right there,” said Tilley.

Houston says the price of gas has been volatile of late and cutting the gas tax would take away from crucial government services.

“Making that change could have long-term ramifications on the ability to provide health care and on the ability to support the education system and on the ability to provide government services,” said Houston.

The province brought in $266.5 million in 2020 from that provincial gas tax and another $223.8 million in 2021.

According to the department of finance, the province estimates they’ll receive $253.2 million this year and another $255.1 million in 2023.

The opposition argues as the price of gas rises so does the revenue from the fuel tax, and calls that money “a windfall,” saying it should go back to Nova Scotians who are struggling.

"We believe that that revenue should be used to help people who are in acute distress,” said Chender.