Gas sellers wary of tax cut to get say: premier
Last Updated: Thursday, July 9, 2009 | 3:33 PM AT
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The premier of Nova Scotia is promising that gas station operators worried about the effects of a tax cut on gasoline near the border will get their say on the matter.
Darrell Dexter said Thursday that the plan to cut taxes in communities near the New Brunswick border is meant to discourage people from driving out of Nova Scotia to take advantage of cheaper gas prices.
But those who own gas stations in Springhill, about 30 kilometres from Amherst, are worried the tax cut will drive business from their community to those closer to the border.
Dexter said that's why his government is considering the idea carefully, and will look at how the approach works in other provinces.
"It's not inventing anything new. It's something that exists in other places," Dexter said.
"One of the reasons why it'll be in the fall is so we can hear those kinds of concerns and that so we can bring forward a policy that will make sense for consumers."
Dexter wouldn’t say where the line will be drawn or if taxes will be lowered in increments the farther motorists get from the border.
People will have to wait till the policy is announced to get those details, he said.
During the election campaign in May, the NDP promised to find a way to keep drivers from heading to New Brunswick, where the tax on gas is lower and drivers usually pay several cents a litre less.
Some gas station owners in the Amherst area say business has plummeted since 2006, when the province started to regulate prices.
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