The CTF says governments should start by ending the practice of charging sales taxes on top of provincial and federal gas taxes – eliminating the tax-on-tax.
Numbers calculated by the CTF shows Newfoundlanders would save about 3.4 cents a litre if the tax-on-tax is eliminated.
Statistics on gas prices can be found: Here
“Charging tax on top of another tax should be illegal in Canada, it’s time for our own governments to stop gouging drivers and end the tax on tax,” said Kevin Lacey, Atlantic Director for the Canadian Taxpayers Federation.
The CTF earlier this year launched its national Gas Tax Honesty Day in Ottawa. CTF directors pushed to lower gas taxes in Vancouver, Edmonton, Regina, Winnipeg, Ottawa, Saint John and Halifax.
The Gas Tax Honesty campaign has been calling on government to eliminate the tax on tax and reduce the overall taxes. This is the 13th year the Federation has been conducting the campaign.
The Federation also points out that the total tax paid by drivers is also higher in 2011. Newfoundlanders on average pay about 1.7 cents more a litre in extra tax thanks mostly to the higher prices of gasoline. This extra tax means governments at both the federal and provincial government are collecting windfall tax revenues thanks to the punishing high prices.
“There’s something wrong when average driver is paying more tax, at the same time they are struggling to afford to fuel in the tank,” says Kevin Lacey, Atlantic Director with the CTF.
The Federation has launched a petition to end the tax-on-tax, you can find information on that campaign: Here
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