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Gas Tax Attack

Author: Mark Milke 1999/05/19
VICTORIA: The Canadian Taxpayers Federation (CTF) today held a national news conference in Burlington, Ontario and regional news conferences in Edmonton, Calgary, and Winnipeg to raise awareness of government tax gouging at the pumps. The CTF also released a research paper documenting the growth in gas taxes over the past 30 years as the major contributor to high gas prices.

"The real problem with gas prices is that taxes keep them high," said CTF federal director Walter Robinson. "On average, 54% of the pump price is tax and nothing else. With each $20 fill-up, almost $11 goes directly to various levels of government. And the feds only return only 5% of the $5 billion they collect each year in fuel taxes back to the provinces for road development and construction."

CTF-BC director Mark Milke noted that BC motorists are only slightly less gas-taxed than the national average. In Vancouver for example, a 61 cent per litre price includes 30 cents in taxes (49% of the pump price) up from 19 cents in taxes back in 1987 (37% of a 50 cent per litre pump price.) "'Use it (on roads) or lose it' is our message on gas tax revenues to governments," said Milke.

The CTF also released a position paper today. It documents increased gas taxes over 30 years as the major driver toward higher gas prices. The CTF recommends:

  • A reduction of federal and provincial fuel taxes to levels commensurate with highway funding;
  • Dedication of fuel tax revenues to highway construction and maintenance;
  • Elimination of GST and HST charges on the tax component of the pump price;
  • Elimination of municipal tax levies at the pump; and
  • The encouragement of service stations to post pre- and post-tax prices on appropriate exterior signage.

    "Many consumers are hyper-price sensitive before long weekends so this is the ideal time to re-frame this debate with all the facts at hand," added Robinson. "Gas taxes are at an all-time high, while actual costs for oil are at near-record lows. Lower fuel taxes will lead to lower pump prices. Motorists must demand an end to government tax gouging at the pumps."

  • A Note for our Readers:

    Is Canada Off Track?

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    Franco Terrazzano
    Federal Director at
    Canadian Taxpayers
    Federation

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