Starting Feb. 1 and running until March 31, 2027, the excise tax will be reimposed at 50 per cent of the pre tax-holiday value before being returned to the full rate on April 1, 2027, CBC.ca reported.
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The fuel tax holiday also includes the four cent per litre excise tax on aviation fuel.
“These ongoing disruptions in the Middle East are driving up energy costs, pushing fuel prices higher and putting additional pressure on families, workers and businesses here at home,” Champagne said.
In April, Carney temporarily removed the 10-cent federal excise tax on a litre of gas, four cents per litre on diesel and four cents on a litre of aviation fuel, until Sept. 7, which is Labour Day.
At the time, Carney said the move, which was expected to cost an estimated $2.4 billion, would act as a bridge to help get Canadians over “short-term pressures” caused by a spike in the global price of oil since the U.S. began its war with Iran.
Finance Canada estimates that extending the tax holiday will cost an additional $2.9 billion, bringing the total tax relief on fuels since April to $5.3 billion.
