NEW – Federal: Tax on residential energy should be eliminated in upcoming federal budget
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The CPA issued a press release on December 17 to propose that like other essential goods, fuels such as propane should be subject to a zero-rated tax – meaning taxable but with a zero rate, when used for heating homes and other residential applications.
“At a time when Canadians are trying to get their lives back to normal and COVID-19 continues to cause havoc, high energy bills are difficult for many people to manage,” said Allan Murphy, Interim President and CEO of the Canadian Propane Association (CPA). “Rising energy costs are among the many inflationary pressures facing Canadians. There is an urgent need to remove taxes on the final charges to consumers for residential energy.”
The change would see propane and other heating fuels that are marketed exclusively to domestic consumers for residential purposes be zero-rated. The application would be similar to goods such as most groceries, as well as agricultural and fish products, to name a few. Currently home heating is subject to the full GST/HST.
Read the complete news release on the CPA website.
