Ahead of the federal budget in April, the David Suzuki Foundation and other self-described ‘civil society groups’ are calling for the federal government to implement a windfall profit tax on oil and gas companies “to fund climate solutions and nature protection.”In a statement on Monday, it also wants a tax on grocery retailers “for their excessively high profits.”It comes after the Suzuki Foundation, 350.org and Climate Action Network Canada commissioned a Leger survey it says shows a majority of Canadians (62%) support a windfall profit tax on oil and gas companies’ “historically” high profits, with the strongest support in Quebec and Ontario.No other regional breakdowns were given but it’s reasonable to assume those numbers weren’t close in petroleum producing provinces such as Alberta and Saskatchewan..“The fossil fuel industry is making the climate crisis worse each day. We need governments to step in, otherwise we risk more devastating climate impacts.”Tom Green, David Suzuki Foundation.“Momentum is building for a windfall profit tax on oil and gas companies’ excessive profits. It’s easy to see why: the fossil fuel industry has made the affordability crisis harder for people while making out like bandits,” said Tom Green, the group’s senior climate advisor.“The fossil fuel industry is making the climate crisis worse each day. We need governments to step in, otherwise we risk more devastating climate impacts.”Finance Minister Chrystia Freeland releases the Liberal budget on April 16 and is widely expected to pander to special interests ahead of a federal election that must be called before October, 2025.Bashing the oil and gas industry has traditionally been an effective vote-getter in Eastern Canada, even as it is desperately seeking new revenue sources..It’s also despite the fact that oil companies took a 25% haircut in 2023 almost right across the board.Despite lower profits, it appears the environment activists just might get their wish. In 2022 the Liberals introduced a one-time tax of 15% on profits over $1 billion for banks and insurance companies.Last fall the Parliamentary budget office said extending it to oil and gas would generate an additional $4.2 billion over five years.A windfall profit tax was also recommended by the House of Commons’ finance committee to impose new taxes on oil and gas companies as well as grocery retailers for what it termed “excessively” high profits.“Sky-high petroleum prices and sky-high oil and gas profits, were the biggest single factor causing recent high inflation in Canada. Even with moderating gasoline prices, petroleum profits in 2023 were still $30 billion higher than the last year before the pandemic,” said Jim Stanford, an economist with the Centre for Future Work.“Those excess oil and gas profits are 7.5 times larger than the growth in grocery store profits (up $4 billion in the same time), that has rightly generated such public anger. It’s time Canadians turned their attention to the much larger excess profits being captured by the oil and gas giants… It would be good for the planet and good for the economy.”
