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Quebec's new gas tax pleases no one
CBC News
December 11, 2006
The Quebec government may not be able to stop petroleum companies from passing a new "green" gas tax on to consumers, even though it has asked the industry to absorb the cost for the greater good of the province.
The new gas tax could amount to 1.3 cents per litre. The government proposed it, calling it an annual duty to be paid by fuel distributors, as a way to raise money for the province's plan to fight climate change.
It was part of Bill 52, an act to implement the province's energy strategy, introduced in June.
At the time, Quebec said consumers wouldn't be saddled with the extra cost because petroleum companies would pay it.
But the Canadian Petroleum Products Institute indicated in early December that the Quebec tax could cost companies an estimated $200 million — more than gas companies' profit margins.
On Thursday, opposition leaders in the national assembly accused the government of misleading the public about the tax.
"It's the consumer who will finish up with a new tax imposed on him," said Mario Dumont, leader of l'Action démocratique du Québec.
Quebec Premier Jean Charest responded by saying it was up to companies to decide whether they'd absorb the cost of the tax, but he reminded the assembly that consumers could also choose where to fill up.
Environment Minister Claude Béchard said Thursday he was skeptical about the petroleum industry's claims it can't afford another tax.
"Their profit for this year will be around $7 billion. I think there will be no bankruptcy with our plan," he said.
Bill 52 is still pending at the national assembly. A vote is expected before the holiday break. If it passes, tax would take effect some time in 2007, after cabinet drafts rules and regulations for its collection.
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