The Yukon government says it will not waive a gas tax, despite rising prices and an announcement by Alberta to take a break on the tax.
Silver said he met with his counterparts in other provinces and territories on March 11 to discuss issues around inflation and gas prices. He said the territorial government will continue to urge the federal government to take action.
“We, right now, have the fourth-lowest cost of fuel at the pump compared to the average. We’re in a good place right now,” he said.
The Yukon Party had raised the suggestion in the legislature, accusing the government of doing little to improve affordability in their 2022 budget.
“The government can still do the right thing. They can drop the fuel tax in the territory and help Yukoners to continue to afford the necessities. The great thing is that they can do it and still be in a surplus, so will the government do the right thing and agree to drop the fuel tax?” asked Stacey Hassard.
Hassard proposed that temporarily scrapping the gas tax — with gasoline prices now rising to 179.9 cents a litre in Whitehorse for regular and 199.9 cents for diesel — would help businesses and individuals struggling with money.
Outside of Whitehorse, Hassard said prices in Beaver Creek had risen to 235.9 cents a litre, a “51 cents in two weeks” upward trend.
“People are in debt, people are struggling, and they are looking for the government to help,” he said. “We are not in a good place when it comes to fuel prices. The skyrocketing price isn’t just making life difficult for everyday Yukoners; it’s going to harm the struggling tourism industry as well.”
The Alberta government announced that it would temporarily eliminate the gas tax in the province on April 1 due to rising prices. Minister Ranj Pillai suggested on March 8 that Alberta’s oil revenue made that a more viable move for that province.
The fuel tax in Yukon amounts to around 6.2 cents for gasoline and 7.2 cents for diesel. Silver noted that British Columba’s fuel tax is 27 cents per litre and Alberta, before it was rescinded, was 13 cents per litre.
“We are very concerned. Absolutely. But for the members opposite to say that there’s only one thing that we can possibly do to make lives more affordable for Yukoners? I completely disagree with that,” he said.
Contact Haley Ritchie at haley.ritchie@yukon-news.com