VICTORIA: In light of recent gas price spikes, the Canadian Taxpayers Federation today called on the BC provincial government to phase out the 1.25 cent per litre gas tax collected to subsidize BC Ferries and on the federal government to nix the 1.5 cent per litre deficit-fighting gas tax.

"Recent pump price spikes should inspire the provincial government to make gas prices more affordable to motorists," said Victor Vrsnik, BC director for the Canadian Taxpayers Federation. "Phasing out the 1.25 cent per litre gas tax for BC Ferries would go a long way to ease the price shock at the pumps."

Vrsnik noted that motorists in Vancouver pay the highest combination of gas taxes in the country at 27 cents per litre plus GST. Victorians pay 23.5 cents per litre while motorists in the remainder of the province pay 21 cents per litre plus GST.

Now that BC ferries has been transformed into an independent company responsible for generating its own operating revenues, the annual $72 million subsidy to transpiration services is no longer appropriate. The CTF recommends that the province phase out subsidies supplied by provincial motor fuel taxes to remote ferry routes in British Columbia.

"It's unfair to motorists who never use the ferry service to subsidize money-losing routes through their gas taxes. Pump prices are unaffordable as it stands," said Vrsnik.

Vrsnik noted that unlike British Columbia, that has matched motoring revenues with transportation spending, the federal government spends only a fraction - 2.4% - of its $5 billion in annual gas taxes on roads, 99% of which is spent east of the Ontario border.

The CTF calls on the federal government to dedicate gas taxes to roads and eliminate the 1.5 cent per litre tax introduced in 1995 to reduce the deficit. The deficit was vanquished 6 years ago but the tax remains.

"BC Motorists cannot control the rising price of crude oil but they can press the federal and provincial governments to make pump prices more affordable by lowering motor fuel taxes," concluded Vrsnik.