Quebec's environment minister warns oil companies to expect one-cent tax
Last Updated: Wednesday, June 27, 2007 | 10:29 AM ET
The Canadian Press
Quebec will forge ahead with its plan to tax oil companies to fund environmental programs, the province's environment minister warned on Tuesday.
Line Beauchamp says Quebec will not back down from imposing a tax of nearly one cent per litre on refiners and distributors of petroleum products come Oct. 1.
"One thing is certain, the contribution asked for is inevitable and unavoidable," Beauchamp said during a Tuesday news conference. "It's the polluter-pays principle. The government's decision has been made."
The environment minister was reacting to media reports that cited oil company representatives claiming the tax represented between 50 and 70 per cent of their profits in Quebec.
The tax will be $0.008 for every litre of gas sold in the province, and $0.0094 for every litre of diesel.
The government hopes to raise some $200 million through such measures to fund its efforts to fight greenhouse gas emissions.
With the oil industry making record profits, Beauchamp said it should have no problem absorbing the tax, rather than passing it on to consumers.
"We call on this industry to do everything it can to avoid having consumers pay this tax," she said. "We think there is enough breathing room within the oil industry to be able to make this contribution."
