STOP THE $1.6 BILLION TAX-ON-TAX GRAB ON GASOLINE AND DIESEL
OTTAWA, ON: The Canadian Taxpayers Federation (CTF) today called on governments to end the tax-on-tax practice for gasoline and diesel, marking the organization’s 15th annual Gas Tax Honesty Day.
The CTF called on both federal and provincial governments to end the practice of calculating the GST or HST after they’ve already levied provincial and federal excise taxes on gasoline, thereby taxing their own taxes. The result has been governments collecting an extra $1.6 billion from unsuspecting motorists. The CTF also renewed its call for governments to ensure all tax money collected from drivers be earmarked exclusively for streets and roads and not diverted for other purposes.
“Canadians are paying $24 in tax every time they fill up their tank,” said CTF Federal Director Gregory Thomas. “The average two-car Canadian family will pay $1,262 a year in gas tax this year, with $72 actually being tax charged on other taxes. It’s just wrong.”
Thomas pointed out that taxes make up most of the difference in the price of gas from province to province, with Ontario gas selling eight cents cheaper than across the river in Quebec, gas in New Brunswick selling three cents cheaper than in Nova Scotia, and Alberta gas going eight cents to 12 cents cheaper than in B.C.
Some city drivers get gouged the worst, with a two-car Vancouver family paying an additional $551 per year in gas tax, while a Montreal family pays an additional $97 yearly to cover the local gas taxes.
Thomas warned drivers in Toronto and other Canadian cities to reject new gas tax schemes, or “revenue tools” as Ontario Premier Kathleen Wynne describes them, similar to Vancouver’s.
“City politicians look at the two-car family as a piggy-bank they can break open to pay for their new transit empires,” said Thomas. “In Vancouver, working families pay $551 extra, no matter how much money they earn. The further they need to drive to get to work or their kids to soccer games, the bigger the tax grab. It’s not a fair way to pay for multi-billion dollar transit projects.”
“In Vancouver, the more they raise gas taxes, the more they force drivers across the U.S. border to fill up their tanks and do their other shopping. These new gas taxes are not only hurting consumers, they’re hurting local business, sending money and jobs South,” concluded Thomas
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