Canadian Prime Minister Pledges To Cut Aviation, Diesel Fuel Taxes In Half As Election Promise

Jet fuel costs grabbed the spotlight on the second full day of the Canadian election campaign on Tuesday. Current Prime Minister Stephen Harper said that if his government is re-elected it will cut the federal excise tax on jet fuel in half, to about nine cents per Canadian gallon. No reductions in the 50-cent-per-gallon tax on avgas were mentioned. Harper said the reduction, which will also apply to diesel fuel, will cost the country $600 million CDN a year but offer some relief to airlines and transportation companies struggling with high fuel costs. His rivals in the election (which, by the way, was called on Sunday and will be over Oct. 14) are dismissing the tax cut as a "gimmick," but it may have legs as an issue because of a proposal by the Liberal Party for a nationwide carbon tax that would almost triple the current fuel taxes.


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