Bill C-38

Canadian Fuel Affordability Act

An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief)

This enactment amends the Excise Tax Act to extend the temporary suspension of the federal fuel excise tax until January 31, 2027 and to temporarily set the excise tax rates on fuels to 50% of the regular rates for the period beginning on February 1, 2027 and ending on March 31, 2027.

Canadian Fuel Affordability Act

[The Assistant Deputy Speaker, John Nater]

I am afraid that I do have to interrupt the hon. member to proceed to private members' hour.

The House resumed consideration of the motion that Bill C-38, An Act to amend the Excise Tax Act (extension of the federal fuel excise tax relief), be read the second time and referred to a committee.

[Brad Vis, Conservative, Mission—Matsqui—Abbotsford, BC]

Mr. Speaker, the last key point I would like to make with respect to the state of small business in Canada today comes from the president of PacifiCan, who, on a call with members of Parliament in British Columbia earlier this summer, stated that her department was not meeting the outlined time frame for delivering tariff rebates to the companies that had applied for those funds.

As the government consistently states, we are in an economic war with the United States. I would hope that a key measure announced to support Canadian businesses during this time would be treated with more severity than we have seen. I would encourage the Minister of Housing and Infrastructure, who has responsibility for PacifiCan, to look closely at those programs and do better.

All of us in the House have to stand up for Canada. We need to stand up for Canada because our businesses are suffering. There is going to be a lot of new legislation put forward, and I implore the government to consider small businesses. The information coming from the Canadian Federation of Independent Business is not good. The loss of confidence and the departure of our brightest young Canadians who feel they have a better future in the United States is not the Canadian way.

I know that collectively, in the House, we do not want to see that happen, but it will take hard work and more collaboration by the government, and listening to Conservative ideas, to improve that competitiveness and to bring in those structural reforms that are needed so young people, when they graduate from university, say that their best opportunity in life is to start a business in Canada. I believe we can get there.

I will be focusing in this session, with the mandate that I have been given, on pointing out where the government is not doing enough to support our entrepreneurs. Let us work together. Let us build Canada up. Let us stand up for our entrepreneurs and do better for the people who pay our salaries, who pay taxes and who do not demand a lot and often give more.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, that is one of the reasons we have a Prime Minister and a government committed to looking at expanding export opportunities, with 20-plus trade and security deals over the last 18 months. We can talk about the huge investment summit, a half-trillion dollars of infrastructure and so much more coming Canada's way in terms of commitments. These are the types of things that are making a difference, like providing a Red Seal enhancement program that is going to see more Red Seals graduating.

These are the types of things that are there to support and grow small businesses. I wonder if we can count on the member opposite's support.

[Brad Vis, Conservative, Mission—Matsqui—Abbotsford, BC]

Mr. Speaker, just today, the B.C. business council and, I believe, the Manitoba business council and the Alberta and Saskatchewan business councils were in Ottawa. They spoke about the need to do more for our small businesses to reduce the regulatory burden.

With respect to the programs outlined by the member for Winnipeg North, the Red Seal trades program announced by the government, for some reason, excluded aviation. That is an area where we could work together, to ensure that those dollars from ESDC go to the aviation sector, which I know is very important in his riding, as it is in mine. There are common-sense things we are not doing today that we have to do for small businesses: regulatory reform and improving programs to meet the actual needs.

[Fraser Tolmie, Conservative, Moose Jaw—Lake Centre—Lanigan, SK]

Mr. Speaker, one thing I have noticed is that some of the policies the Liberals are bringing out now are obviously Conservative policies, but the difference is that when Conservatives were conceiving these policies, they were for a vision to insulate us from the issues and challenges that we are facing today.

Would my colleague agree that it is too little too late from the Liberals, whereas if a Conservative government had been voted in, we would have solved these problems before they were even on our plate?

[Brad Vis, Conservative, Mission—Matsqui—Abbotsford, BC]

Mr. Speaker, I agree that many of the measures being put in by the Liberals right now are actually Conservative ideas, and I am glad to see some of those things being adopted, because they will make some improvements. What is happening right now is that the government is in a process of erasing the most socialist policies of Justin Trudeau, and I am glad to see that erasure take place, but we have seen a lot of damage.

I will conclude by noting that we need more emphasis by the government on maintaining market access in the United States. Those business councils, the ones from Manitoba, talked about the existing trade relationships with the United States that need to be upheld. We need to see more from the government on that. That is where small businesses do business. We have to support them.

[Doly Begum, Liberal, Scarborough Southwest, ON]

Mr. Speaker, I understand that the member's riding is going through difficulties similar to those across the country. Bill C-38 would make life more affordable for Canadians. Would the member support a measure that would make life more affordable for Canadians, something that people across this country are calling for?

[Brad Vis, Conservative, Mission—Matsqui—Abbotsford, BC]

Mr. Speaker, I absolutely support Bill C-38, and I will be voting in favour of it. I will note that when we tried to do the same thing last spring, the government rejected our proposal. I am glad that its members have listened to their voters and to Canadians, understanding that what the Conservatives were proposing was a positive step forward to support our businesses. My only hope is that the government extends this in perpetuity.

I am going to repeat this. Small businesses right now need to maintain market access to the United States. That is where the majority of our exports go. I have worked at Global Affairs, and even though I agree with expanding global markets, we cannot forgo the existing economic relationships that underpin the entirety of the Canadian economy.

[Doly Begum, Liberal, Scarborough Southwest, ON]

Mr. Speaker, it is an honour to rise in this House as I begin my journey as a member of Parliament for the wonderful riding of Scarborough Southwest. I am delighted to be back in the House after the summer break, when we had a chance to talk to our constituents, go to events and meet with a lot of constituents to find out the struggles they are facing. It is great to be back to speak to the issues we heard about from our constituents. My riding has people from all different backgrounds; it is a very diverse riding. People across my riding, just like those across Canada, are struggling right now, especially with affordability and making ends meet. Today, I am delighted to speak on behalf of my constituents about Bill C-38, the Canadian fuel affordability act.

We have heard from across the aisle and throughout this afternoon about the importance of this legislation. This government's effort has been to make life more affordable for Canadians across this country. Canadians are living through a period of economic uncertainty shaped by global instability and rising costs. The United States, as we know, has imposed new tariffs on Canada designed to hurt and divide us. At the same time, we know what is happening across Europe and the Middle East, which is also driving up prices around the world, especially here at home. In response, our government continues to focus on what we can control: building a strong Canadian economy, diversifying our trade partners abroad, delivering responsible fiscal management and supporting Canadians who are under pressure from everyday expenses.

Throughout the summer, I heard from my constituents about the increase in the cost of living. Many are worried about the increasing price of essential goods like fuel, food, housing and other daily necessities.

Before I forget, I would like to mention that I will be sharing my time with the member for Portage—Lisgar.

Our government understands these pressures, and we are taking concrete and responsible actions to ease the burdens that many Canadians are facing, all while safeguarding long-term economic stability. That includes immediate support for daily costs. We know we have to make long-term plans, but at the same time we have to help the people who are struggling this very day.

In April, we temporarily lifted the excise tax on gasoline and diesel through the summer months, initially planned until Labour Day. On the first day that took place, which is actually the same time I joined this House, back in April, gasoline prices declined by 11¢ per litre. That is real money back in the pockets of hard-working Canadians. This delivered immediate relief to consumers, including those in my riding of Scarborough Southwest.

Knowing that Canadians are still feeling pressure, earlier this month the Minister of Finance announced an extension of this measure until January 31, 2027, after which 50% of the regular excise tax rate would apply from February 1 through to March 31, 2027. This measure is expected to continue reducing Canadians' costs at the pump by up to 10¢ per litre for gasoline and four cents per litre for diesel until February 2027, and by up to five cents per litre for gasoline and two cents per litre for diesel until April 2027.

These are measures that we know work, and we are continuing them. All told, they are estimated to provide $5.3 billion in total tax relief for Canadians, of which $2.9 billion is from the September extension alone. The pause in the excise tax lowers prices at the pumps and helps reduce transportation and production costs across the economy. We heard in this House and from those across our ridings about the impact. It is supporting families, farmers, truck drivers and the businesses that rely on them to move goods. In fact, all Canadians will see benefits from this measure.

However, that is not the only thing we have done to make life more affordable for Canadians. Our government has also introduced the new Canada groceries and essentials benefit, which is providing additional significant support for more than 12 million Canadians. It is based on the goods and services tax credit, but it is more generous. As of July 2026, payment amounts have increased by 25% for five years, and in June, those 12 million Canadians received a one-time top-up payment. Again, that is real money back in the pockets of hard-working Canadians. Combined, this means that a family of four will receive up to $1,890 this year and a single person up to $950 this year.

We know that housing affordability continues to challenge many Canadians, especially those trying to purchase their first home. This is why we eliminated the GST for first-time homebuyers on new homes valued up to $1 million, a measure that can provide savings of up to $50,000. We also extended the grace period under the homebuyers' plan from two to five years for participants making a first withdrawal, until the end of 2028. This will provide cash flow relief of up to $4,000 per person per year for three years and will help households manage early expenses during the crucial first year of home ownership. I know how important that is, because when I talk to young people, some of them feel like they do not know if they can even dream of buying their own home for the first time.

Taken together, these and other actions reflect a balanced approach. What that means is immediate cost relief, targeted support for those who need it most and prudent management of the public purse.

Canada has the fiscal capacity to draw on our strengths and respond to global challenges. That is exactly what we are doing. We had the fastest-growing economy in the G7 in Q2 2026 and have managed our finances in a way that has reduced our deficit for 2025-26. While revenues have grown, we have directed most of this increase to helping Canadians with the cost of living. This is the balance that Canadians expect from their government: responding to global challenges with a responsible and pragmatic fiscal approach.

We cannot control global forces. As our Prime Minister has said, we cannot expect to control what is happening outside, but we can control what happens here. We cannot control the global forces that drive up prices, but we can control how we respond to them.

Our government is cutting taxes to help Canadians manage everyday expenses while we build a stronger, more independent economy. We will continue to respond to affordability pressures with fairness, discipline and a focus on results for Canadians, because that is what Canadians expect and that is what Canadians deserve. That is what Bill C-38 would do. This is how we build Canada strong for all.

[William Stevenson, Conservative, Yellowhead, AB]

Mr. Speaker, I appreciated my colleague's remarks when she said how good this measure is. Earlier today, the finance minister said that when they took it off for a while, they saw immediate results and it was benefiting the economy. Can you tell me why they would not want to have long-lasting results and eliminate this issue altogether going forward?

[The Assistant Deputy Speaker, John Nater]

I would just remind the member to address questions through the Chair.

The hon. member for Scarborough Southwest.

[Doly Begum, Liberal, Scarborough Southwest, ON]

Mr. Speaker, we believe in building an economy that is strong, that helps people grow and that helps people be independent in their own ways, even when they need support, as we saw during COVID, for example. What we are facing right now is unprecedented, so we need to provide support immediately. This is an immediate support that would help people get going to make ends meet.

In terms of long-term efforts, we will be doing those as well. They are two different things, and we need to be very focused on both of them.

[Jean-Yves Duclos, Liberal, Québec Centre, QC]

Mr. Speaker, I was obviously delighted, as many others were, to listen to one of our newest members of Parliament on this side of the aisle. I listened carefully and heard from her that she believes it is important both to fight for the interests of Canadians and Canada outside of Canada by building more alliances and by diversifying our trade relationships and to fight for the interests of Canadians, especially those who are struggling more with the high cost of living.

Why, in her view, is it important to do those two things, especially in the context of what we hear from opposition MPs, who say that the Prime Minister should not try to address both challenges at the same time?

[Doly Begum, Liberal, Scarborough Southwest, ON]

Mr. Speaker, we have had a good relationship with our friends next door, the United States, and in the past it worked really well. Unfortunately we are facing a time right now when we cannot depend on that friend. Therefore, we must diversify, we must strengthen our economy and we must face the challenges we have at this very moment, which means that, while we have these kinds of measures, we also need to strengthen our ties across the world. We have great partners that are really interested. During the summit, we have seen the type of interest we are getting from across the world.

It is high time that we diversify our trade and build those partnerships as well, because Canada is a place where people want to invest. We are lucky to have a wonderful country like this where people are looking to unlock those opportunities.