-- CTF Challenges Finance Minister Martin to End Doublespeak on Gas Taxes --

OTTAWA: The Canadian Taxpayers Federation (CTF) today reacted to Finance Minister Paul Martin's intransigence and refusal to reduce the federal excise tax by 1.5 cents/litre on gasoline products. During Question Period, Minister Martin stated that he would only commit to address the issues of high gas taxes in concert with the provinces.

"This double-speak from Minister Martin is really growing tiresome and a touch gaseous," stated CTF federal director Walter Robinson. "Mr. Martin didn't consult the provinces when he hiked gas taxes in 1995. It stands to reason that he doesn't need their approval or buy-in now to lower federal taxes."

The CTF pointed out that the 1.5 cent/litre hike in the federal excise tax was introduced in 1995 to aid in the fight against the deficit. Robinson asked "with the deficit vanquished, why does the 1.5 cent hike remain in place It looks like nothing more than a greedy federal tax grab."

"While joint federal-provincial action on lowering gas taxes would be ideal, until this happens, somebody has to stand up and lead the gas tax cut parade," added Robinson. "It' time for the Finance Minister to play the role of parade marshal instead of watching from the curbside."


Gas Tax Facts

• The Federal Government collected over $4.7 billion in gas taxes in fiscal 1998/1999 and returned a paltry 4.1% -- $194 million - back to provincial transfers for road and highway development.
  
  
• On average, Canadian motorists are paying between 36% and 45% (depending on the province) in taxes with each gas pump fill-up. For the current fiscal year (2000/2001), the federal and provincial governments will collect over $13 billion in gas taxes from Canadians.
  
  
• Minister Martin continues to ignore the advice of his own caucus in refusing to cut gas taxes. In June 1998, a committee of 47 backbench Liberal MPs chaired by Liberal gas crusader Dan McTeague, advocated the reduction of the federal excise tax from 10 cents/litre to 8.5 cents/litre.
  
  
• The CTF's comprehensive report on gas taxes entitled Canada's Gas Taxes = Highway Robbery can be found online.