Tax and MP pay hikes one month away

Author: Franco Terrazzano 2024/03/01

The Canadian Taxpayers Federation is calling on the federal government to scrap its plan to increase the carbon tax and alcohol taxes while also hiking salaries for members of Parliament on April 1.

“In one month, the feds will make like more expensive with another round of tax hikes,” said Franco Terrazzano, CTF Federal Director. “Canadians are still struggling to afford basic necessities, so Prime Minister Justin Trudeau should be providing relief, not hiking taxes.”

The federal carbon tax will increase to 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas on April 1. The carbon tax will cost the average family up to $911 a year even after the rebates, according to the Parliamentary Budget Officer. 

First passed in the 2017 federal budget, the alcohol escalator tax automatically increases excise taxes on beer, wine and spirits every year by the rate of inflation. Alcohol taxes will increase by 4.7 per cent on April 1. The automatic tax hike is undemocratic as MPs won’t vote on it. The federal government capped the increase at two per cent last year.

MPs also take pay raises each year on April 1. The CTF estimates this year’s pay raise will range from an extra $8,100 for a backbench MP to an extra $16,200 for the prime minister, based on contract data published by the government of Canada.

“The very same day MPs take more money out of Canadians’ pockets they’ll be stuffing more into their own and that’s wrong,” Terrazzano said. “MPs don’t deserve raises when they make life more expensive with tax hikes.”

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Franco Terrazzano
Federal Director at
Canadian Taxpayers

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