HALIFAX, Nova Scotia -- The Canadian Taxpayers Federation (CTF) has launched its 10th annual Gas Tax Honesty Campaign, marking yesterday's Gas Tax Honesty Day. The yearly campaign kicks off the summer travel season for Canadian motorists. It is also the day of the year that taxpaying motorists are reminded of the high tax component hidden in the price of gasoline—a tax burden that will only increase if the federal government and provinces adopt a carbon tax on fossil fuels.
Over the past 12 months—May 2007 to April 2008—the average national price of a liter (0.26 gallon) [image-nocss] of gasoline paid by Canadian motorists was approximately $1.16 Canadian ($1.156 U.S.). This represents a 17-cent increase over last year's average price. Today, gasoline taxes account for an average 28% of the pump price.
CTF directors held press conferences at nine gas stations across the country to talk about government tax gouging. Afterwards, a handful of customers were refunded the tax component of their pump purchase to highlight the heavy tax load on gasoline. If proponents of a carbon tax are successful, Canadians will pay more for gasoline and diesel (as well as natural gas, propane and home heating fuel).
"Ottawa will collect approximately $5 billion in direct gasoline and diesel taxes this year. Another $1 billion will come from the GST [Goods & Services Tax]," said federal director John Williamson. "The good news is Ottawa will spend $1.95 billion or 37% of its gasoline and diesel tax revenue on roads and highway infrastructure this year. The amount will increase to 52% next year when roadway spending is scheduled to hit $2.7 billion. This level of spending exceeds the 50% target first advocated by the CTF in 2002. Four years ago, the federal government spent only 7% of gasoline tax revenues on roads making this an impressive turnabout. This is a partial victory for motorists. To complete it, gas taxes need to be lower."
Williamson continued, "The bad news is some are calling for new taxes on most sources of energy, including gasoline. Consumers should be under no illusion, enacting a carbon tax will mean higher energy prices and a tax increase on the middle class. As a result of [British Columbia's] carbon tax, gas prices in the province will increase by 2.41 cents on Canada Day and by 7.23 cents in 2012. It will impact family budgets."
The CTF is calling on Ottawa to cut, rather than raise gasoline taxes by eliminating the 1.5-cents-per-liter "deficit elimination tax" as a first step; stop taxing taxes by removing the GST (and Harmonized Sales Tax [HST] where applicable) charged on federal and provincial gasoline levies; and reducing the federal levy an additional 2.5 cents. These three measures would reduce the gasoline tax bite by five cents a liter.
To date, the CTF has delivered more than 150,000 petitions to Parliament Hill demanding lower and dedicated gasoline taxes. The CTF began its Gas Tax Honesty Campaign in 1999 to inform Canadians of the gasoline taxes they pay at the pumps, to ensure gasoline taxes are dedicated toward roads, and to pressure Ottawa to cut gasoline taxes not spent on road construction.Click here to view the report.
Click hereto view a Canadian Press video report on "Gas Tax Honesty Day."
Meanwhile, the Canadian government said it will step up inspections at gas stations across Canada this summer and will soon increase fines for inaccurate retail gasoline dispensers to $10,000 from $1,000 and raise fines on repeat offenders, reported the CP. Industry Minister Jim Prentice said Measurement Canada has reported that about 3% of gasoline pumps tested between 1999 and 2007 have been inaccurate.
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