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A call to end the GST on home heating costs is getting support from one energy association.
The Canadian Propane Association says it wrote Prime Minister Justin Trudeau two years ago to consider the idea in light of the rising cost of living.
It proposes a legislative change that would exempt heating energy for housing from the federal tax.
“Given the past year of inflation and increased interest rates, the government can provide an immediate reduction on the cost of residential energy,” states Shannon Watt, President and Chief Executive Officer of the Canadian Propane Association, in a statement. “Our 400 plus members are having discussions every day with their customers from coast to coast to coast, and the message they are getting about the fear of high costs is clear, which is why the case for our proposal for government action to make energy more affordable for Canadians is stronger than ever.”
Watt says heating a home is a basic necessity and should not be taxed as a luxury item.
“While the arguments among governments and political parties regarding carbon taxes continue unabated, the federal government should take a concrete step helping to make home energy more affordable for Canadians by making GST zero-rated. “It’s time that the federal government recognizes that home energy is an essential part of everyday life and should be made as affordable as possible for Canadians.”
She notes a 2019 report by the Parliamentary Budget Officer suggested Canadians could see annual savings of well over a billion dollars.
The federal NDP brought forward a similar motion in the House of Commons last fall, but it failed to pass.