High taxes make high gas prices more painful
OTTAWA, ON: The Canadian Taxpayers Federation is highlighting sky-high gas taxes as the price at the pump soars across Canada.
“Drivers are feeling the pain of high gas prices and taxes are making things much worse,” said Franco Terrazzano, Federal Director with the CTF. “More than a third of the price of gas is actually tax in many provinces. In fact, Canadians even have to pay taxes on top of taxes when they fill up the tank.”
Gas prices are soaring across Canada:
Taxes account for 31 to 42 per cent of the pump price of gasoline, depending on the province.
The federal government and some provinces charge a sales tax on top of other fuel taxes. That means that as the price of gas and fuel taxes increase, the tax-on-tax costs Canadian drivers more money.
The federal carbon tax is driving up the tax bill. By 2030, the federal carbon tax is expected to cost about 40 cents per litre of gasoline. In addition, Ottawa is implementing a second carbon tax through fuel regulations that could add up to 11 cents per litre. These two carbon taxes could cost a family nearly $40 every time they fuel up their minivan in 2030.
“Taxes already cost Canadians big time at the pumps and that tax bill will only grow with carbon tax hikes,” said Terrazzano. “If politicians want to improve affordability and lower prices at the pumps, then they need to provide tax relief.”