• Begins May 25th at Mile 0 in Victoria, B.C.*

Ottawa: The Canadian Taxpayers Federation (CTF) today launched its 6th annual Gas Tax Honesty Campaign, marking Gas Tax Honesty Day. The yearly campaign begins on the Thursday before the Victoria Day holiday weekend, which kicks off summer travel season for Canadian motorists.

This year, the CTF will embark on a cross-country tour, in a campaign decorated van, of forty communities - that will coincide with the federal election - to build support for lower gasoline taxes and its Municipal Roadway Trust - a practical model for returning half of the federal gas tax revenues directly to municipalities. (See page 2 of this news release for details on the Running on Empty - Fuming to Ottawa tour.)

"This year the Canadian Taxpayers Federation will hit the road to build momentum for change by inviting Canadians to sign a petition calling for Ottawa to cut gasoline taxes and dedicate half of its gas tax revenues to road construction and maintenance," said federal director John Williamson.

Canadian Gas Facts:

• Of the $5.3-billion collected in federal gasoline and diesel taxes in 2003/04, Ottawa returned a paltry 2.5% or $135-million back in provincial transfers for road and highway development. (In addition, Ottawa collected $1.178-billion in gasoline GST revenues.)
  
• Over the past 12 months - the period of May 2003 to April 2004 - the average cost of a litre of gasoline paid by Canadian motorists was 73.3 cents. Taxes accounted for 42% of the pump price. Gasoline prices have now jumped to an average weekly price of 90 cents/litre. GST is charged on the full pump price, gasoline taxes included. It is a tax on tax. As the pump price increases so too does the GST.
  
• The federal gasoline tax increased by more than 550% between 1985 and 1995 - from 1.5 to 10 cents/litre. As a deficit reduction measure in 1995, Ottawa increased the gasoline tax from 8.5 to 10 cents/litre. The federal deficit was vanquished six years ago, but the tax remains.
  
• Liberal leadership candidate Paul Martin pledged to share federal gasoline tax revenues with municipalities, but did not deliver on this policy in the recent budget. Despite this failure, the Prime Minister has indicated he will again campaign on the policy in the 2004 general election.
  
• In 2002, Canadian municipalities spent $7.8-billion building and maintaining roads yet received none of the federal gasoline tax revenues. More than 80% of all roads in Canada are municipal roads.

The CTF began its Gas Tax Honesty Campaign in 1999 to inform Canadians of the gasoline taxes they pay at the pumps, to ensure gasoline taxes are dedicated toward road construction, and to pressure Ottawa to cut gasoline taxes not spent on road construction. To date, the CTF has collected more than 80,000 signatures in favour of its initiative.

The CTF is demanding Ottawa eliminate the 1.5 cent/litre deficit tax as a first step; remove the GST (and HST where applicable) charged on the federal and provincial levies that total 19 to 30 cents per litre of gasoline to net another 1.5 cents in savings; and reduce the federal levy by an additional 2 cents.

"The Finance Minister recently told Canadians he will not help consumers by removing the GST charged on top of the 10 cent federal excise tax. He labeled this simplistic because it will only save consumers a penny per litre," said Williamson. "He should consider our plan to share some of Ottawa's tax revenues with Canadian municipalities and to cut gasoline taxes by 5 cents per litre and give consumers a real break at the pumps."

The Running on Empty - Fuming to Ottawa Tour:

On Tuesday, May 25, the CTF's federal director and provincial directors will begin to travel from mile zero on Vancouver Island, through British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and arrive on Parliament Hill in Ottawa 30 days later. Along the way, they will continue to raise awareness of the gasoline tax bite, meet with municipal politicians and taxpayers, and invite them to sign the CTF's gas tax petition.

The planned route map is posted on the CTF website at: www.taxpayer.com/fumingtour.htm.

Journalists who would like to meet up with the tour should contact the federal office at 613-234-6554.

* Assuming a June 28th federal election.