-- New Report Part of CTF's 2nd Annual Gas Tax Honesty Day --

OTTAWA: The Canadian Taxpayers Federation (CTF) today held a news conference on Parliament Hill to raise awareness about government tax gouging at the pumps. The launch of the CTF's 2nd annual Gas Tax Honesty Day campaign includes a new report detailing federal and provincial gas tax gouging at the pumps and the condition of government investment in Canada's roadways. The CTF will also use its award winning web site to "drive" an on-line petition for lower gas taxes as part of its lobbying activities leading to Budget 2001.

"Gas taxes continue to keep pump prices artificially high," said CTF federal director Walter Robinson. "Only four percent of Ottawa's $5 billion in gas tax revenues are put back into concrete. It's highway robbery. Talk about road rage, this is ridiculous."

The CTF study provides an historical overview of gas taxes collected by the federal and provincial governments and recommends:

A reduction of federal and provincial fuel tax rates to levels commensurate with highway funding;

Dedication of fuel tax revenues to road renewal;

Elimination of the HST and GST charges on the tax component of the pump price (no tax on tax); and

Encourage service stations to post pre-tax and post-tax prices on appropriate exterior signage.

The study is not only critical of the government's record on gas taxes and road development, but it also reserves criticism for the oil industry's virtual silence on the tax issue. "Big oil's complacency in not explaining the pricing structure of its product has allowed politicians to perpetuate the suspicion of a price fixing conspiracy even though study after study has proven otherwise," added Robinson.

"The resentment against high gas prices is understandable but often misplaced. Neither government nor Big Oil will come clean on the biggest culprit of unaffordable pump prices - namely gas taxes," concluded Robinson.