Revenue from increased taxation of oil and gas companies could benefit the poorest, says UN.
Ottawa has no plans to tax oil and gas companies more despite calls from United Nations (UN) Secretary-General Antonio Guterres when he denounced “outrageous” profits in the energy sector earlier this week.
Mr. Guterres called on various governments around the world to tax companies in these industries more to support the poor and vulnerable.
Asked by CBC/Radio- Canada, the Department of Finance of Canada indicated on Friday that there were no plans to increase the tax rate for these companies despite the inflationary context, the effects of which are particularly felt at the pump.
The head of the United Nations (UN) denounced the grotesque greed of the oil and gas sectors and harshly criticized them for the profits they make at the expense of the poorest because of the war in Ukraine.
< p class="e-p">Mr. Guterres recalled that global energy companies made $100 billion in profits in the first quarter of 2022 and that those profits need to be taxed more. The sums collected would help the poorest, who find it harder than the wealthy to bear the consequences of high inflation and the impacts of climate change.
The UN leader added his voice to other figures who have recently accused corporations of taking advantage of global shortages and supply problems to make profits even bigger than most. before the crisis.
“This grotesque greed punishes the poorest and most vulnerable people while destroying our only common home, the planet,” said UN Secretary General Antonio Guterres. (Archives)
Ironically, the day after Mr. Guterres came out against the oil companies — he did not name a company — Suncor Energy reported quarterly profit up sharply from a year ago. The company made $3.99 billion in profit in the second quarter of 2022 compared to $868 million in 2021, four and a half times more.
When asked if Ottawa was considering raising the income tax, the Department of Finance instead cited other federal tax measures, including the permanent 1.5% increase in the tax rate. taxation of the banking and financial sectors and the introduction of a tax on certain luxury goods (private planes and cars over $100,000).
We have been and remain committed to ensuring that everyone pays their fair share of tax, we were told in an emailed statement.
Daniel Blaikie, finance critic for the New Democratic Party (NDP), believes that the federal government really has some leeway if it wanted to tax the excessive profits of the energy sector in a context where people are really under pressure when& #x27;it's about being able to afford their rent, groceries and petrol.
We've seen Tories in the UK do this, added the criticism of the NDP by referring to Britain's passage last month of a windfall 25% tax for North Sea oil and gas producers.
Daniel Blaikie, New Democratic Party Finance Critic
M. Blaikie also indicated that this money could be used to improve the tax credit for the goods and services tax (GST) as well as the Canada child benefit.
By taxing oil and gas companies more, it would be possible to improve old age security benefits for people aged 64 to 75, a measure announced last year that currently only applies to people aged 64 to 75. seniors 75 and older, he said.
Former Parliamentary Budget Officer Kevin Page believes these taxed benefits could be used to strengthen our social safety net.
Energy companies could argue, in return, that high taxes are an unfair burden on an industry still trying to recover from the sharp drop in energy prices that occurred at the start of the pandemic. , recalls Mr. Page.
The Canadian Association of Petroleum Producers (CAPP) declined our request for an interview but indicated by email that the increase in the price of products increases royalties paid to the state.
Canada is expected to see royalties collected from the four oil and gas producing provinces grow by 283% year-on-year , added the CAPP, royalties to which are added taxes (on income and companies), municipal taxes and the sums generated by the auctioning of mining rights.
Increased production from democratic countries like Canada would help redevelop uire consumer costs, the association finally added.
With information from Guy Quenneville, CBC