Hidden gas taxes drive up pump prices in Newfoundland and Labrador: Report

Author: Jay Goldberg 2023/08/01

The Canadian Taxpayers Federation released its 25th annual Gas Tax Honesty Report to shine a light on all the hidden taxes that making fueling up more expensive.

“High gas taxes make high pump prices more painful,” Jay Goldberg, Interim Atlantic Director of the CTF, said. “Politicians could immediately make life more affordable by reducing their big tax bill at the pumps.”

The CTF’s Gas Tax Honesty Report shows that taxes make up 33 per cent of the pump price in Newfoundland and Labrador, which works out to about 59 cents per litre. The average tax on a 64-litre fill-up in the province is $37.76.

Newfoundlanders and Labradorians have the lowest gas tax burden in Atlantic Canada thanks to Premier Andrew Furey’s temporary seven cent per litre of gasoline tax cut, which has been in place since June of 2022.

“The Furey government’s gas tax cut has saved the typical Newfoundland and Labrador family more than $500 since it was put in place just over a year ago,” Goldberg said. “Furey is lowering costs at the pumps, but unfortunately Prime Minister Justin Trudeau is doing the opposite by forcing two federal carbon taxes on Newfoundlanders and Labradorians.”

The federal carbon tax was imposed on Newfoundland and Labrador on July 1 at the rate of 14 cents per litre of gasoline. The federal government also imposed a second carbon tax through fuel regulations that took effect on the same date. By 2030, when the fuel regulations are fully implemented, the two carbon taxes will increase the price of gasoline by about 55 cents per litre and cost the average family more than $2,100 annually.

“It’s extremely tone deaf for the federal government to keep hiking carbon taxes when Canadians can barely afford to fuel up their cars now,” Goldberg said. “Canadians need relief and that means politicians must scrap their carbon taxes that don’t help the environment.”

The federal government and Newfoundland and Labrador calculate sales taxes after the per-litre taxes are added. This tax-on-tax costs drivers in the province an extra 5.3 cents per litre of gasoline.

You can find the CTF’s 2023 Gas Tax Honesty Report here.


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