Gas Tax Talk: Less Fumes, More Action
Author:
Sara Macintyre
2006/05/18
Since 1999, the May long weekend has marked the launch of the Canadian Taxpayers Federation's (CTF) Gas Tax Honesty Campaign. In past years, the campaign always managed to raise the ire of motorists unaware of the massive tax grab at the pump. But as for government action, it's been like Bill Murray's movie Groundhog Day; where the lead character re-lives the same day over and over again.
This year, however, promises to be different as we have a new government and a prime minister who has consistently promised gas tax relief. In fact, last year soon-to-be Prime Minister Stephen Harper was one of the CTF's key advocates in our call for lower and dedicated fuel taxes. At a media event on Parliament Hill, Stephen Harper happily accepted over 35,000 CTF gas tax petitions.
The CTF petition calls on Ottawa to dedicate 50 per cent of fuel tax revenues to municipalities for roadway improvement and return the remainder to overtaxed motorists. Ottawa collects over $5 billion each year in fuel tax revenue but returns a mere 17 per cent to roads and highway improvement. The CTF says, use it or lose it!
In addition to the federal 10 cent per litre tax consumers are also charged GST on the fuel price and the tax portion! A tax on tax! This year, Ottawa will see $1.8 billion in GST fuel tax revenue. The one point drop to 6 per cent will be mere peanuts for motorists fuelling up. Meaningful tax relief at the pump is long overdue.
Since 1985 gas taxes have increased a whopping 560 per cent! It's time to give motorists a break. The CTF is calling for an immediate end to the practice of charging GST on the tax portion of the pump price. Ottawa also charges motorists a 1.5 cent per litre "deficit reduction tax" yet the federal deficit has been gone for eight years. It's time to scrap the bogus "deficit reduction tax'!
Many of the CTF recommendations have been echoed by the Conservative Party while in opposition and were part of their 2006 election platform promises.
Last fall, then Opposition Leader Stephen Harper harshly criticized the Paul Martin government for their inaction on gas taxes. During debate in the House of Commons, Mr. Harper said:
"Canadian businesses and consumers have been enduring record high gas prices across the country. On this issue as well, Canadians have seen nothing other than 100 days of inaction from the government. Rather than continue to rake in record high revenues from record high oil prices, will the government simply cut gas taxes for consumers "
Mr. Harper has also condemned the federal government's practice of charging GST on fuel taxes, noting "Every time gas prices rise a cent, almost $40 million goes into the coffers of the government. It should stay in the pockets of consumers." Well said Mr. Harper!
For each of the past five years, the CTF has recommended the government adopt a Municipal Roadway Trust. The trust would only be used for road, highway and bridge enhancement; not parks, beautification projects or light rail projects. Our proposal was mirrored in last year's Conservative Platform commitment to establish a permanent highway and infrastructure fund. The first Conservative budget has come and gone without any mention of these important promises. Is the new boss same as the old boss
As pump prices hover between $1.10 and $1.20 per litre in British Columbia, now is the perfect time for the new prime minister to show consumers and motorists that he isn't full of hot air, that he does stand behind his promises. The CTF is reminding motorists to think of Prime Minister Harper at each fill-up and contact his office to ensure he honours his commitments. Better yet, go on-line to www.taxpayer.com and fill out our gas tax petition.