Canada Extends Gas Tax Holiday Until 2027

The Canadian government announced that it will extend the federal excise tax holiday on gasoline and diesel until January 31, 2027. This means that for the next two months starting February 1, the excise tax will be reimposed at 50 per cent of its pre-holiday value before being returned to its full rate on April 1, 2027.

The holiday was initially announced in April and was set to end on Labour Day. Finance Minister François-Philippe Champagne stated that this extension is part of the government's efforts to help Canadian families and businesses deal with the rising cost of living.

Champagne pointed out that ongoing disruptions in the Middle East are driving up energy costs, pushing fuel prices higher and putting additional pressure on families, workers, and businesses. He emphasized that reducing the federal fuel excise tax is a direct measure that applies across the country and has an immediate impact on consumers.

Conservative Leader Pierre Poilievre welcomed the extension but criticized it as only a 'modest extension' for Canadians who are already squeezed by higher costs. He reiterated his previous demand to remove all federal taxes on gasoline and diesel, including the GST, until at least Canada Day 2027.