Ottawa & Regina: The Canadian Taxpayers Federation (CTF) keeps public pressure on the Liberal government to do the right thing and reduce gasoline taxes. A half-page "open letter to the federal Liberal caucus" appeared in today's edition of Regina's Leader Post to coincide with the start of the government caucus meeting in Regina.

In the advert, the CTF asks government MPs how they can justify collecting the 1.5 cent a litre "deficit elimination" gas tax from motorists when the deficit is long gone; and why the GST (and HST) is charged on the full pump price - gas taxes included - which adds, on average, another penny-and-a-half to pump prices. The CTF also recommends an additional two cent per litre reduction to the federal excise tax to give motorists a five cent a litre tax break.

"Finance Minister Ralph Goodale has characterized a 3 or even a 5 cent a litre reduction as trivial when a 3 cent tax reduction would return approximately $1.2-billion to motorists and a 5 cent cut would mean $2-billion going back to taxpayers," said CTF federal director John Williamson. "This amount might appear small next to Ottawa's ballooning multi-year, multi-billion surpluses. But isn't it time Ottawa give motorists a break at the pumps and stop making excuses about why taxes cannot be reduced "

The CTF advertisement as printed in the Leader Post is re-printed below.

An Open Letter to the Federal Liberal Caucus:

Gas prices are at an all-time high this summer. While there's nothing you can do to affect the world price of oil, there's plenty that can be done to reduce fuel taxes, which account for one third of the pump price.


How do you justify charging motorists the 1.5 cent a litre "deficit elimination" gas tax when the deficit vanished seven long years ago Moreover, why are you charging GST on the total pump price, gas taxes included This tax-on-tax scam adds another penny-and-a-half to pump prices.

It doesn't make much sense.

It makes even less sense when you consider the federal government's surplus is pegged at $8-billion, and that less than 6% of the $5.7-billion Ottawa collects each year in fuel taxes (GST included) is spent on roads and highway infrastructure.

Don't taxpaying motorists deserve a break

The Canadian Taxpayers Federation also recommends a further two cent per litre reduction to the federal excise tax. Together these measures will give motorists a five cent a litre break at the pumps - each and every time they fill up.

Your government will still collect billions of dollars in fuel tax revenues. Tax dollars we recommend be dedicated to roads and highway spending.

More than 120,000 Canadians have agreed by signing our gas tax petition. You can read our proposals for lower gas taxes and dedicated roadway spending at www.taxpayer.com.

Best wishes with your deliberations in Regina.

Sincerely,

The Canadian Taxpayers Federation