VANCOUVER, BC: The Canadian Taxpayers Federation (CTF) is holding its 13th annual Gas Tax Honesty Day to inform Canadians about the amount of taxes they pay at the pumps and to hold governments accountable for those dollars.
This year's calculations show that Metro Vancouver drivers pay the highest combined gas taxes in Canada at 32 per cent and the tax bill has increased since last year. Victoria drivers and drivers in the rest of B.C. are not far behind, with gas taxes accounting for 28 to 30 per cent of the cost at the pump.
Calculations done by the CTF show drivers in Metro Vancouver pay 44.55 cents a litre in federal and provincial excise taxes, carbon tax and HST. And the carbon tax goes up an additional 1.11 cents a litre on July 1st. The national average per litre tax in Canada is 37 cents.
"We're grateful that the B.C. government does not charge provincial HST on gas," said CTF British Columbia Director Gregory Thomas. "Stephen Harper should honour his commitment to Canadians and scrap the federal HST on gas as well. It is a tax on a tax and a tax and a tax. It's like some kind of bizarre Dr. Seuss taxation rhyme."
Speaking at the Super Save Gas at Kingsway and MacPherson in Burnaby, Thomas explained that the federal portion of the HST is calculated after all the other taxes have been added to the price of gas.
"Politicians don't like to admit that taxes account for nearly one-third of the price of gas. And that does not include provincial royalties on crude oil and it does not include business taxes paid by the oil companies," Thomas added.
In 2004, the Conservative Party wrote in a national news release: "The fastest and easiest way to give Canadians relief at the pump is for the federal government to stop charging GST on top of gasoline excise taxes."
The CTF today released calculations detailing gas tax breakdowns in every province. The calculations show:
Federal and provincial tax-on-tax scheme cost Canadians 2.4 cents/litre;
The average two car family will pay approximately $1,100 in gas tax every year;
There is a strong positive correlation between lower pump prices in provinces with lower taxes on gas.
"The fact is that lower gas taxes result in lower prices paid at the pump," said Thomas.
The CTF held Gas Tax Honesty Day events in Vancouver, Edmonton, Winnipeg, Ottawa and Saint John.
Details and provincial breakdowns can be found HERE.
A graphic breaking down a litre of gasoline can be found HERE.
A graphic contrasting current tax-on-tax with the CTF's proposal can be found HERE
A three-page graphic with taxes for Vancouver, Victoria and the rest of B.C. can be found HERE.
B.C. government carbon tax increases and dates can be found HERE.
B.C. government gas tax rates can be found HERE at page five.
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