Amendments introduced to reduce gasoline and motive fuel taxes11 March 2020
FREDERICTON (GNB) – Amendments to the Gasoline and Motive Fuel Tax Act were introduced today at the legislative assembly which would result in New Brunswickers paying 4.63 cents per litre less for gasoline and 6.05 cents less per litre for motive fuel as of April 1.
“We are doing what is right for New Brunswickers,” said Finance and Treasury Board Minister Ernie Steeves. “We committed in our 2020-21 budget to protect consumers, to energize the private sector and to ensure a healthy natural environment. Today’s tax measure is a concrete step towards a prosperous, greener and more vibrant New Brunswick.”
Under the proposed amendments, the gasoline tax will decrease from 15.5 cents per litre to 10.87 cents per litre. The motive fuel tax will decrease from 21.5 cents per litre to 15.45 cents per litre.
The reductions are part of the made-in-New Brunswick carbon tax announced earlier in December. The New Brunswick carbon tax, which will be effective on April 1, is the alternative to the federal government’s backstop carbon fuel levy and applies to 20 separate fuels.
“Our made-in-New Brunswick carbon tax is fair and will achieve results,” said Steeves. “It brings parity to fuel prices in other Atlantic provinces to New Brunswick consumers, businesses, and industry. It also recognizes our unique economic realities, and it will help us to reach the federal government’s emissions targets.”
With this reduction, there will be an effective price on carbon of two cents per litre in 2020-21. All carbon revenue will stay in New Brunswick and will be reinvested into climate change initiatives.
More details on the made-in-New Brunswick carbon tax plan will be available in the coming weeks.
An energized private sector is one of the government’s key priorities. More information about the government’s priorities and measurements is available online.