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ShareOTTAWA -- In a likely attempt to counter the opposition Liberals' Green Shift plan, Stephen Harper's Conservatives announced today they plan to cut the four-cent-per-liter diesel excise tax in half.
According to the Financial Post, which in late August reported the Tories were mulling such a plan, Harper has pledged to cut $600-million out of the tax, which generates over $1 billion a year in revenue.
If reelected, the Conservatives will drop the tax down to 2 cents.
A source told the Post that reducing the tax would boost the economy by lowering transportation costs for shippers, trucking companies and railways, and thereby reducing costs of goods to market.
The source noted that the policy is in stark contrast to the Liberal's Green shift plan, which would instead increase taxes on diesel by at least seven cents over four years.
Canadian Trucking Alliance CEO David Bradley recently told todaystrucking.com that he welcomed the news that Ottawa was seriously considering a cut to the much-hated and "regressive" tax.
"Obviously we have been successful in getting the issue elevated of late," said Bradley, whose group is strongly opposed to Stephane Dion's carbon tax plan.
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