The proposed Fuel Tax Suspension Act had its first reading in the Legislative Assembly of the Northwest Territories on November 03.
The act, if passed, would suspend territorial fuel taxes on gasoline, diesel, railway and aviation petroleum products for one year, providing an estimated $15 million in tax relief.
The proposal was brought forward by Kieron Testart, MLA for Range Lake and Robert Hawkins, MLA for Yellowknife Centre.
“Yellowknifers have been clear to me that the cost of living has become a crisis that threatens the well-being of their families. This is a sentiment shared across the North, and we are taking real action to address it today with this legislation,” said Testart.
The proposed suspension would lower fuel expenses for households and businesses and remove some of the cost associated with transporting essential goods to remote communities in the territory.
Current published territorial rates include a 10.7 cents per litre tax on gasoline and 9.1 cents per litre on diesel. How much residents would save per litre of fuel will depend on how the reduction in taxes is reflected in prices.
“Families need relief today, not more promises tomorrow, and it’s time this government stopped talking about affordability and started delivering real savings by passing this legislation without delay,” said Hawkins.
The act is scheduled for its second reading on November 04, with further debate, review, and consideration to follow.
