Tuesday, September 9, 2008

Tories to cut diesel, jet fuel excise

Now if it were just diesel, that might actually be a good idea, but jet fuel?
In his first promise of the election campaign, Conservative Leader Stephen Harper is pledging to cut federal excises taxes on diesel and aviation fuel in half within four years.

Mr. Harper is vowing he would the tax by two cents -- reducing it to two cents per litre from the current four cents.

He says it will offer welcome relief for consumers because it would reduce shipping costs for goods they buy, from food to furniture. The levy reduction will cost the federal treasury $600-million.

“It's modest, affordable and responds to real needs,” said the Conservative Leader, who used a Winnipeg warehouse of vegetables as a backdrop to illustrate the impact of fuel taxes on consumer goods.

Now diesel does indeed have an impact on the price of these things, and the demand is fairly inelastic. Jet fuel, on the other hand, is a luxury. Sorry Steve, but flying to the Dominican Republic every winter is not a "real need". Well, it might be a real need for Steve someday, when an angry mob is after his head...

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