Elimination of Provincial Fuel Tax on International Passenger Flights

Year
2010
Number
B103
Sponsor(s)
Kamloops Richmond

WHEREAS local airports and communities recognize and appreciate that the Province eliminated fuel taxes on international cargo operations, and that the carbon tax is not applicable to international flights; AND WHEREAS other provincial jurisdictions have eliminated fuel tax on international flights, placing them in a more competitive position to significantly enhance new opportunities and gain new business: THEREFORE BE IT RESOLVED that the government of British Columbia eliminate the fuel tax on all international passenger flights, which would cost the government approximately 20 million annually in forfeited revenue but the growth in international travel would quickly offset this amount and generate a net increase in governments overall revenues, as well as supporting economic development in airport communities and improving BCs international connectivity, building a base for future growth.

Provincial Response

Ministry of Finance Premier Gordon Campbell announced in September 2010 that the provincial government proposes to eliminate the 2 cent-per-litre jet fuel tax for international flights by April 1, 2012. The elimination of the jet fuel tax for international flights is subject to the approval of the legislature and YVR and airlines moving ahead with proposed expansion plans.

Convention Decision
Endorsed