• To date, 150,000 gas tax petitions delivered to Parliament Hill
  
• CTF pegs the cost paid by Canadian motorists of the GST tax-on-tax bite and the "deficit elimination" tax at $9.5-billion

Ottawa: The Canadian Taxpayers Federation (CTF) continues to speak out on the issue of high gasoline taxes. Today on Parliament Hill, federal director John Williamson unveiled 35,000 gas tax petitions calling on the federal government to cut gas taxes by 5 cents a litre. Last October, the CTF delivered 65,000 petitions to John Godfrey, Minister of State (Infrastructure and Communities). Another 50,000 gas tax petitions were presented to Paul Martin, then-Minister of Finance, in 2000.

"Because the prime minister and his finance minister say they will not cut the gas tax, the Canadian Taxpayers Federation opted to deliver the gas tax petitions to the Conservative Opposition," stated Mr. Williamson. "We want to turn taxpayer anger over gas prices into voter anger at Ottawa's gas tax gouging. The Liberals are not listening to the cries from Canadians to tax them fairly at the pumps."

Calculating the cost of the "deficit elimination" tax (since 1998) and the GST tax-on-tax (since 1991):

"Since the budget was balanced in early 1998, the federal government has collected $4.7-billion from its 1.5 cent per litre 'deficit elimination' tax. This is an offensive tax that should have been repealed when the books were in surplus," said Williamson. "In addition, since the GST was brought in the tax-on-tax scheme has cost taxpaying motorists another $4.8-billion. These two illegitimate tax measures have cost Canadians taxpayers $9.5-billion."

In 1995, the year Ottawa's gasoline tax jumped from 8.5 to 10 cents per litre the hike was labeled a "deficit elimination measure" by then-Finance Minister Paul Martin. Canada's deficit was vanquished in 1997-1998, but the deficit reduction tax remains.

The GST and HST (paid in New Brunswick, Nova Scotia and Newfoundland & Labrador) are charged on the full pump price, gasoline taxes included. The tax is levied on Ottawa's 10 cent per litre fuel excise tax as well as provincial taxes, which range from a low of 9 cents/litre to a high of 20.5 cents/litre. And as pump prices climb, Ottawa rakes in even more GST revenues. At current price levels, the federal treasury will collect at least another $300-million over the fiscal year.

"Approximately one third of the price of a litre of fuel in Canada is taxes. Taxpayers want action in the form of lower taxes on fuel, not more excuses from the government why gas taxes cannot be reduced," concluded Mr. Williamson. "It is time Ottawa ended its gas gouging. This can be accomplished with three easy steps. Ottawa should end its GST tax-on-tax bite. This will lower the price, on average, by 1.5 cents a litre. It should scrap the 'deficit elimination' tax, which will save another penny and a half. Lastly, reduce the federal levy by 2 cents, bringing the total saving to motorists to 5 cents a litre. Theses modest measures will return $2-billion to taxpayers each year."