$80 million in tax-on-tax collected from Albertans this year
Alberta families pay $787 in gas taxes every year
CALGARY, AB: The Canadian Taxpayers Federation (CTF) held its 15th annual Gas Tax Honesty Day today as it called on the federal government to end the practice of charging tax-on-tax for gasoline and diesel.
Government’s across Canada collect $1.6 billion in tax-on-tax by applying sales taxes on top of hidden gas taxes. In Alberta, the federal government collects $80 million in tax-on-tax through the GST.
“Governments have a right to shake us down for taxes, but they should be open and upfront about it. High gas taxes are one thing, but taxing-tax is unethical,” said CTF Alberta Director Derek Fildebrandt.
The CTF also renewed its call for gas taxes to be made open and upfront.
“Albertans are paying $15.55 in taxes every time they fill up their tank,” Fildebrandt continued. “The average two-car Albertan family will pay $787 a year in gas tax in 2013, and most don’t even know it.”
Fildebrandt warned drivers against pushes by city governments to increase gas taxes to pay for new spending. Last October the CTF released documents showing that Mayor Nenshi and Calgary City Council were pushing for a host of new taxing powers from the province, including a municipal gas tax.
“Many city politicians view commuting drivers as an ATM to be withdrawn from whenever a new items pops onto their wish list. The last thing we need is for our city governments to get in on the gas tax cash grab.”
Fildebrandt concluded, “Gas taxes should be considered a user-fee and used exclusively for the building and maintaining of roads and road-related infrastructure, not to subsidize other government building projects.”
To read the complete 2013 CTF Gas Tax Honesty Report, click here.
For a graphic breakdown of gas taxes in Alberta, click here.
For a graphic breakdown of tax-on-tax, click here.
Derek Fildebrandt, Alberta Director
