Freeland defends the decision not to tax oil and gas companies' windfall profits

Author : Rutik Tiwari

In fall economic report, Finance Minister C. Freeland defended her president's decision not to impose a windfall tax on oil and gas companies

Freeland revealed the Liberals' spending plans and gave a report on the state of the Canadian economy on Thursday when she released her fall economic statement

The economic report also contains a "downside scenario," which shows its projected that Canada will encounter a recession in the coming year

But, the NDP, the Liberals' supply and confidence partners, is calling for a windfall tax on both large oil and gas companies

The windfall tax is a higher tax rate applied to some above-average revenues that emerge from unexpected circumstances, like the war in Ukraine

“During COVID-19 lockdowns, the federal government undertook extraordinary emergency spending. We basically put a line, a net, underneath the Canadian economy” - C. Freeland

“It was the right thing to do,” she also said. “And it also really, really helped our financial institutions.”

“We've chosen to approach it in this fall economic statement in a slightly different — but I think really smart — way,” she added

While the Conservatives want the Liberals to cut the carbon tax, the NDP is also asking them to do away with the GST on home heating