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Scheer promises to drop GST from heating, energy bills

Conservative federal leader Andrew Scheer has promised to drop the GST from home heating and energy bills if elected. (Photo courtesy of The Conservative Party of Canada)

By Dave Flaherty/The Oshawa Express

Riding high in the polls, federal Conservative leader Andrew Scheer is promising to drop the GST from home heating and energy bills.

Scheer says the plan will save the average Canadian household $107 per year.

“It’s hard enough to get ahead these days without the government taking money out of your pocket,” Scheer stated in a media release. “Heating your home in the winter isn’t a luxury for Canadians. It is a necessity. We don’t tax other basic necessities like groceries and we shouldn’t be taxing home heating.”

According to a Conservative backgrounder, all home energy for primary residences, including electricity, natural gas, heating oil, propane, and wood pellets, would be exempt from the federal tax.

The Canadian Revenue Agency would work with utility companies to provide the five per cent rebate to customers, capped at $200 per household.

Commercial energy use and investment properties would not receive the exemption.

Scheer said the Liberals’ proposed Carbon tax will increase the cost of heating, cooling and powering homes in Canada.

While the Conservatives claim an average savings of $107, they believe some homes could save as much as $150.

In Ontario, it is speculated dropping the GST from heating and energy bills would lead to an average savings of $113 in 2019, creeping up to $116 in 2022.

The highest savings are estimated to occur in Newfoundland and P.E.I.