Fuel tax pause offers bigger break to higher-income families: budget watchdog
Ottawa’s temporary federal fuel tax suspension is providing greater savings to higher-income households, according to a new report from the Parliamentary Budget Officer (PBO). The report estimates the tax break will save the average Canadian family $276, with the wealthiest households saving $468 compared with just $132 for the lowest-income households, largely because higher earners consume more fuel. The measure, introduced to ease rising energy costs, is expected to cost the federal government $4.9 billion, with the tax set to be gradually reinstated starting in February 2027.
