Regina: The Canadian Taxpayers Federation (CTF) today launched its 4th annual Gas Tax Honesty Day (GTHD), a public awareness campaign to reduce gas taxes and fix roads. Along with a news conference, the CTF also released its 4th annual GTHD report entitled Filling the Infrastructure Gap.

The report's key recommendations include:

Directing $2.2 billion in federal gas taxes to a Municipal Roadway Trust;

Immediately injecting $12-15 million into road projects in Regina and Saskatoon and $66 million for other cities, towns and RMs in Sask ($93 million total);

Cutting the excess federal gasoline tax from the pump price;

Ending the 1.5 cent/litre gas tax surcharge implemented in 1995 to fight the deficit;

Elimination of GST and HST on tax portion of pump price; and

Further posting of pre- and post-tax pump prices by ALL gasoline retailers.

"While politicians blame big oil and international markets for high gas prices, the fact is that governments are the biggest gas gougers of all," says CTF provincial director Richard Truscott. "The federal government rips you off every time you fill up your gas tank. They rip you off by charging high gas taxes, by hiding the taxes from consumers, and - most importantly - by refusing to return gas tax dollars to the cities, towns, and rural municipalities that desperately need the revenue to maintain roads and transportation."

Municipal Roadway Trust
Last year Ottawa raked in over $4.8 billion in gas and excise tax revenues but only returned a paltry 2.4% or $113 million in the form of transfers for provincial roadway development. Even if all infrastructure funding mechanisms are added in, Ottawa is still returning less than 25% of its tax take from motorists at the pumps.

"In our province, the roads are literally crumbling, yet the federal government takes $185 million a year from us in gas taxes, but gives us little but potholes in return. We must put an end to this highway robbery", adds Truscott.

The CTF proposes a Municipal Roadway Trust program that would devote $2.2 billion of federal gas tax revenues annually for three years (renewable by Parliament) for municipalities to draw upon for roadway expenditures. Accountability would be maintained with annual reports from municipalities, verifiable by the federal Auditor General with opportunity for provincial piggy-backing efforts.

"Our model provides immediate cash for stretched municipalities and provides federal accountability for spending of federal tax dollars," says Truscott. In Saskatchewan, the Municipal Roadway Trust would provide close to $93 million per year for roads and highways, including $12-15 million each for Regina and Saskatoon and $66 million for the other cities, towns, and rural municipalities in the province.

Government Gas Gouging
Last year Canadian motorists paid an average of 42% in taxes each time they filled up at the pumps. "As we approach another May long-weekend, taxpayers should be aware that they are being gouged by their government at the pumps," notes Truscott. "Gas taxes should not be treated like a cash cow for government, but like a road user fee that is used for to fund necessary road infrastructure."

"We also recommend the federal government get rid of some of the taxes that have been added on at the pumps over the years. In 1995, Paul Martin slapped an extra 1.5 cents per litre tax at the pumps to help fight the deficit. But we haven't had a deficit for five years so it is time for this tax to be axed," states Truscott. "It is also time to stop the dishonest practice of charging taxes on top of taxes. When the GST is charged on top of excise taxes at the pumps, the government is double dipping into taxpayers wallets."

Retailers Should Post Gas Prices With and Without Tax
Finally, the CTF also calls for gasoline retailers to post the price of gas with and without taxes. "When taxes make up 42% of the cost of gas, the taxman can't be allowed to hide behind the skirts of private retailers. Gas Tax Honesty Day is a time for government to take responsibility for gas taxes and the state of our roads. Its time to shine the headlights on this tax grab and remind politicians that gas tax revenue should be used to meet vital transportation infrastructure needs", concludes Truscott.