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The Great Double-Dipping: Taxpayers Federation criticizes Tax-on-tax on gasoline

Author: Renaud Brossard 14/05/2020
  • Quebec drivers pay 4.8 cents in tax-on-tax on every litre of gasoline they purchase.

MONTRÉAL, QC : The Canadian Taxpayers Federation is using its 22nd annual Gas Tax Honesty Day to criticize the practice of charging tax on tax in Quebec.

“By charging sales taxes on all of their other gas taxes, our governments are guilty of double-dipping in taxpayers’ wallets,” said CTF Quebec Director Renaud Brossard.

The tax-on-tax phenomenon is explained by the fact sales taxes (GST and QST) are calculated on the price of gas including excise taxes, the carbon tax, and, in the Greater Montreal Area, the ARTM tax.

According to CTF calculations, Quebec drivers pay 4.8 cents in tax-on-tax for every litre of gasoline they purchase.

“Quebec drivers already pay some of the highest gas taxes in the country,” said Brossard. “Eliminating tax-on-tax would give a well-deserved break to our truckers and all Quebecers who are affected by the current crisis.”

According to CTF calculations, the Greater Montreal Area has the second highest gas tax bill in the country, with 49 cents of tax per litre of gasoline. The rest of the province of Quebec comes in third, with 45 cents of tax per litre of gasoline.

You can read the CTF’s 22nd annual Gas Tax Honesty Report by clicking here: http://www.taxpayer.com/media/2020_CTF_GTHD_ENGLISH.pdf

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