Internal government records undercut the UCP's justification for replacing July’s fuel-tax relief with a $100 rebate.
A May 29 briefing prepared for Finance Minister Jason Nixon states:
"Internal and external studies (including one conducted by Trevor Tombe) indicate that fuel tax reductions are fully passed through to taxpayers."
The briefing explains that rising oil prices and other market forces can obscure the savings at the pump, even when the tax cut has been passed through. It also says fuel-tax relief "does temper inflation as it reduces the cost of doing business."
But in June, the UCP cancelled the scheduled tax suspension, saying the rebate was preferable to "relying on fuel tax relief and hoping that savings are passed on through lower prices."
Today, Nixon repeated that he is "not 100 percent sure" the savings can be passed on. He then admitted the rebate's computer system "did not work the way that I was satisfied with" and that Albertans struggled to use it.
So... the UCP replaced automatic fuel-tax relief with a cumbersome rebate system that failed to meet its own minister's expectations. Now it is returning to the policy its own briefing said worked all along.
#abpoli
Global uncertainty continues to push energy prices higher, and that’s putting more pressure on Albertans’ wallets.
Today I announced that relief is on the way. Starting Oct. 1, Alberta will suspend the full provincial fuel tax, saving Albertans 13 cents per litre on gasoline and diesel every time they fill up until the end of the year. This is practical relief that helps families, workers and businesses keep more money in their pockets.
Albertans already pay the lowest overall taxes in Canada, and this cut adds to our unmatched tax advantage.