In its 2014 budget, the federal government made a commitment to try to narrow the so-called “price gap” between goods sold in Canada and the U.S. If you’ve ever gone shopping in the States, you’re probably familiar with this phenomenon: exactly the same product, but significantly cheaper down south. 

Why are Canadians stuck paying higher prices? There’s plenty of debate as to the cause. A recent study by the C.D. Howe Institute suggested less competition in Canada is part of the problem. Others suggest it’s partly a reflection of the higher cost of doing business in Canada. And of course on items like gasoline, beer, cars and other products that have special additional taxes on them, the price difference is often those taxes.

Regardless, the government has made a great show of saying it will take action, this week introducing new legislation entitled the Price Transparency Act, which will empower the Competition Bureau to “investigate” cross-border “price discrimination.” That’s right, the government believes that by empowering gumshoe bureaucrats to analyze the price differences between thousands of products, the price gap will be narrowed. One struggles to think of a more bureaucratic approach to tackle this issue.

Yet, there’s an easier approach that would benefit millions of Canadians, whether as consumers or small businesses: raise the minimum value of duty and tax-free cross-border shipments above its current $20 limit. To be clear, this is not the maximum amount that you can bring back across the border after visiting the United States or other countries. This is the exempt level for items shipped or mailed to you from the United States.

For example, if you were to order a rare book from an online bookseller in the United States at a cost of $100 plus shipping, since it is over the $20 threshold you’d have to pay $13 in duty and taxes.

Canada is clearly out of step with the rest of the world when it comes to its exemption limits. At just $20, it is the among the lowest in the world; in the United States it’s $200 and in Australia it’s $1,000. Moreover, the limit has been the same since 1983. It has not been adjusted at all since the rise of the internet and explosion of e-commerce, let alone inflation.

The beneficiaries of raising the limit would be many. Consumers would be paying less in taxes and fees, and also likely getting their goods quicker. Small businesses would have less paperwork and costs that they have to pass along to their customers. And it would be good for all taxpayers, as the Canadian Border Services Agency would be able to concentrate its resources on far more important issues, as opposed to filling out paperwork for every courier box containing a $22 t-shirt.

Best of all is that it would enlist Canadian consumers into the price-gap fight by letting their wallets do the talking. Without additional taxes, Canadians will be better able to directly compare prices offered here with those in the U.S. Canadian businesses that are charging too much will have to sharpen their pencils – or risk customers going elsewhere.

Simply by bringing our taxes on cross-border shipments into line with international norms, Canadian consumers and businesses will benefit, and the government would be closer to ticking off another promise in the year before an election. For a government that insists it is looking out for Canadian consumers and on the warpath against red tape, including such a measure in the 2015 budget should be a no-brainer. 

A version of this article previously appeared in the Edmonton Sun.