Dear Newfoundland & Labrador political leaders,

It’s time drivers get a break from high gas prices and the best place to start would be eliminating the practice of charging sales taxes on top of provincial and federal gas taxes, in other words eliminating the tax-on-tax.

Numbers calculated by the Canadian Taxpayers Federation shows Newfoundlanders would save about 3.4 cents a litre if the tax-on-tax practice were eliminated tomorrow.

The reason we are writing to all political parties today is to urge you to make eliminating the tax-on-tax on gasoline a part of your platform in the next election campaign.

This issue is a matter of principal. There is no reasonable explanation that any government of any political stripe across this country has come up with to explain why they need to charge tax on top of tax, except to gouge drivers and extract as much tax revenue from us as they possibly can.

Our Federation is asking everyone in Newfoundland & Labrador and the rest of Canada to join with us in demanding change. We’ve launched a petition to demand action.  You can find that petition on our website at taxpayer.com

Taxpayers are tired of hearing from politicians and government officials that there is nothing can be done about the high price of fuel.

That claim is absolutely not true.

Today, taxes account for about 30% of the total pump price. To put that in perspective, if you pay to fill up a 50 litre gas tank with regular unleaded in St. John’s you’re paying about $21 in total tax on that fill up. And given the provincial and federal sales taxes are charged on a higher gas price than last year. Governments are making an extra 1.7 cents a litre in sales tax in 2011 than in 2010.

This is not to say that all taxes on gasoline should be eliminated. Some of this money is used to fix and build our roads on which everyone drives.

But government should be able to fix our roads and deliver quality services without gouging the taxpayer by taking extra money thanks to high prices or by charging tax-on-tax.

The upcoming provincial election marks a real opportunity for you and your party. You have a choice: to show your commitment to lower and fairer taxes, by eliminating the tax on tax, or defend the indefensible by continuing to support high and unfair gas taxes.

We urge you to commit to eliminating charging tax on top of tax for gasoline a priority for your campaign.

If you make this commitment our Federation will commit to stand with and support any political party on this issue.

We are looking forward to your response,