EDMONTON: Responding to today's rate decision by the Automobile Insurance Rate Board, the Canadian Taxpayers Federation (CTF) renewed its call on Premier Klein to scrap its 3% hidden sales tax on insurance.

This current fiscal year, the Alberta government is collecting $186 million from Albertans through its 3% hidden sales tax on insurance. This $186 million is included in the price of automobile insurance and other kinds of insurance. As with other taxes, the cost of the 3% insurance tax is passed on to consumers when they purchase goods and services. The $186 million works out to $58 for every man, woman and child in Alberta, or $232 for a family of four.

"It's hypocrisy for Tory politicians to preach lower car insurance costs while collecting millions from Albertans through a hidden sales tax," stated CTF-Alberta director John Carpay.

"With this government collecting billions and billions of dollars more than what is needed to finance government programs, there is no need to keep this 3% hidden sales tax in place. It should be abolished," concluded Carpay.