- CTF celebrates 17th annual Gas Tax Honesty Day
TORONTO, ON: The Canadian Taxpayers Federation (CTF) is calling on the federal government to end the practice of applying the HST/GST after provincial and federal excise taxes have already been charged. This practice of “tax-on-tax” was highlighted as part of the CTF’s 17th annual Gas Tax Honesty Day, with press conferences held across the country from Victoria to Saint John.
Back in 2004, as Leader of the Opposition, Stephen Harper said "the fastest and easiest way to give Canadians relief at the pump is for the federal government to stop charging GST on top of gasoline excise taxes. It's time to axe the tax on the tax."
For example, in Ontario, the tax-on-tax costs drivers an extra 3 cents per litre. Eliminating this hidden tax would save Canadian drivers a total of $1.5 billion each year.
"As Ontarians prepare to drive off to enjoy the long weekend, many will feel the pain at the pumps. But most don’t know how much of that pain is a result of the federal tax-on-tax,” said CTF Ontario Director Christine Van Geyn. “Ending double taxation at the pumps is the right thing to do. Stephen Harper himself called for an end to the practice of tax-on-tax in 2004, and he should do what’s right today.”
The CTF’s annual Gas Tax Honesty Day report shows that taxes make up most of the price difference between at the pump from province to province, and even city to city. Alberta has the lowest gas prices because it has the lowest gas taxes and Vancouver and Montreal have the highest prices because they have the highest gas taxes.
“In Ontario driverss are paying 34 per cent of the price at the pump in gas taxes,” said Van Geyn, “It’s a hidden tax rip-off that all Canadians bear, but most don’t see or know about.”
The CTF is also calling on the federal government to eliminate the 1.5 cents-per-litre federal “deficit elimination” gas tax. The tax was introduced in 1995 to balance the budget, but when the budget was balanced in 1997 the tax stayed. It survived 11 surpluses between 1997 and 2007.
“The so-called ‘deficit elimination tax’ on gas has survived 11 surpluses since it was enacted. The federal government is in surplus again, so it’s time for that hidden tax to go,” concluded Van Geyn.
To read the 2015 Canadian Taxpayers Federation Gas Tax Honesty Day report,
click here.
