The Parti Québécois details its tax on oil companies' “surplus profits” | Elections Quebec 2022
The Parti Québécois is proposing to impose a tax on oil companies on “excess profits”, which could quickly generate $1.25 billion, according to its estimates.
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François Legault is wrong to liken the tax on oil companies' “excess profits” that the Parti Québécois (PQ) would like to introduce to a tax on gasoline, insists Paul St-Pierre Plamondon.
The large companies targeted will not pass the bill on to consumers, assured the PQ leader, Monday morning, when he was questioned on the subject during a stop in Sept-Îles, in the North Coast riding. by Duplessis. No, not at all, he replied. This scenario will not exist.
According to the PQ proposal, a new Quebec competition office – different from the one that already exists in Ottawa – would take charge of ;attack at the very source of the problem.
Its creation would quickly be followed by a fall in prices, says Mr. St-Pierre Plamondon without flinching.
“The Canadian oil companies are stealing from us the pump. This is robbery, because these are prices that are set by cartels.
—Paul St-Pierre Plamondon, leader of the Parti Québécois
The situation is all the more annoying since the retail margin, which should normally be around 9 cents per litre, has averaged 15.8 cents a year in Gaspésie and 14.1 cents on the Côte. -Nord, and this, despite the observed fall in the price of a barrel of oil since the spring, observes the PQ.
Paul St-Pierre Plamondon revealed on Monday the calculations leading him to believe that its tax on the excess profits of oil companies could allow the Quebec government to reap $1.25 billion in 2022-2023 and 2023-2024.
The party relies on estimates from the nonprofit Canadians for Tax Fairness.
According to them, Canada's 10 largest oil and gas companies reported $29 billion in pre-tax profits for the six months from October 2021 to March 2022, up $10.8 billion from their next best six-month period (January to June 2019) in the pre-pandemic 2011 years to 2019.
These 10.8 billion dollars over six months being assimilated by the PQ to excess profits of 22 billion per year, the party calculates that, since Quebec consumption fluctuates around 20% of the production of these large companies, it would be possible to tax 4.4 billion in excess profits.
Since the PQ tax on these excess profits is 25%, the party concludes that it would raise approximately $1 billion by 2022-2023. Said tax, still according to the PQ, would then have a regressive effect on excess profits, so that these would decrease to 250 million in 2023-2024 to disappear completely the following year.
This income could notably be used to pay for the solidarity tax credit that the party wants to double this year – a temporary solution for a temporary reality, he writes in his financial framework. This commitment, which would only generate new expenditures for the year 2022-2023, is estimated at $900 million.
Things had heated on the subject, last Thursday, during the Face-à-Face of TVA, between the head of the Coalition avenir Québec (CAQ) François Legault and Mr. St-Pierre Plamondon.
The outgoing Prime Minister had accused his PQ counterpart of wanting to impose a fuel surcharge on Quebecers which would result in higher prices at the pump. How much are you talking about? Thirty cents a litre? A dollar a litre? he had repeated.
The PQ leader had notably criticized Mr. Legault for distorting [his] remarks.
Let me answer , please, he had thrown at him, visibly annoyed, before accusing in turn his interlocutor of having contributed to the profits of the oil companies by giving $ 500 to almost all Quebecers, the last spring.
Your check for $500, it transited for two seconds in the pockets of Quebecers and then it went to the profits of the oil companies, had launched Mr. St-Pierre Plamondon at the head of the CAQ.