Pressure Mounts on Oil and Gas Companies for Excess Profits Tax

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Oil and gas companies are facing political pressure on Parliament Hill, with calls for a tax on their excess profits gaining support across party lines. Accusations of price gouging and profiting off climate chaos are also being made. The Liberal government has already introduced an excess profits tax on banks and life insurance firms, and now there are demands to apply it to the oil and gas industry.

| CBC News LoadedWith their high greenhouse gas emissions and record profits, oil and gas companies are facing new pressures across party lines on Parliament Hill.Oil and gas giants like Suncor are facing some political pressure on Parliament Hill from MPs calling for a tax on excess profits. With their high greenhouse gas emissions and record profits, oil and gas companies are facing new pressure across party lines on Parliament Hill.

After UN chief calls out 'scandalous' profits, Ottawa offers no plan to hike taxes on oil and gas industry After the release of the PBO's report, Bloc Québécois environment critic Monique Pauzé said she supports an excess profits tax and the Green Party's motion. Liberal MP Mark Gerretsen, deputy government House leader, agreed that Canadians are seeing "price gouging" at the pump and "something needs to be done about it.""Naturally, it would make sound sense to do something similar, but I would really want to understand how that works first," Gerretsen said, adding there may be other options to achieve the same end.

"What we've seen in today's economy especially is that when you cut taxes on Canadians, oil and gas companies, big box stores, banks raise their fees in order to ... get that extra disposable income," Blaikie said. "So that's why I believe that broad-based tax cuts actually don't do the job because the market will raise its prices to capture that extra income."The Conservatives did not provide CBC with a response.

CAPP argues higher commodity prices translate into increased royalties collected by the provinces and higher income taxes, municipal taxes and corporate tax remittances.

 

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