• CTF scolds MPs for turning a blind eye to high gas taxes
• CTF says Finance Minister must be called to testify, anything less is a political sham
• Ottawa continues to pocket a 95% plus profit margin with gas taxes

OTTAWA: The Canadian Taxpayers Federation (CTF) has reacted to news that the House of Commons Industry, Science and Technology committee will summon the CEOs of Canada's largest integrated oil companies to testify and justify the recent surge in gas prices resulting in Canadians paying record amounts from coast to coast each time they fill up the gas tank.

Committee must also address taxes or its hearings are a sham
" There is nothing wrong with asking representatives of 'big oil' to explain their pricing and marketing practices, but MPs must also look at the entire tax component in gas prices which still represents 38% of the pump price, even at 80 cents/litre," stated CTF federal director Walter Robinson. "To conduct an inquisition and grill big oil bosses without calling the Ministers of Industry and Finance to account is nothing more than political grandstanding and buck passing."

Studies find no evidence of price collusion: Studies do find evidence of tax gouging
" For the past quarter century numerous studies have been conducted by Industry Canada, the Competition Bureau and other federal agencies and no evidence of price collusion has been found," added Robinson. "However, for the past four years the CTF has released analyses of Canada's gas taxes and has documented ample evidence of predatory profit taking at the pumps perpetuated by the federal government."

Ottawa's gas tax profits put big oil profits in perspective
" Last year Ottawa raked in over $4.8 billion in gas and energy tax revenues but only returned a paltry 2.4% or $113 million in the form of transfers for provincial roadway development. And even if all so-called infrastructure funding mechanisms are added in, Ottawa is still returning less than 25% of its tax take from motorists at the pumps," said Robinson.

Let's not forget the tax on tax
" The Industry Committee MPs should ask Mr. Manley why Ottawa doesn't treat gas taxes as a user fee on motorists which should be directed back to roadway development," concluded Robinson. "And Canadians shouldn't forget that as prices spike at the pumps, the GST is charged on the total pump price including federal and provincial gas taxes, representing a tidy little windfall for the federal treasury."