- Families pay $82 a year in “tax-on-tax,” $1.7 billion nationally
OTTAWA, ON: On its 14th annual Gas Tax Honesty Day, the Canadian Taxpayers Federation (CTF) released new data on gas taxes with several major findings.
Highlights include:
- That the average two-car family will pay approximately $1,225 in gas taxes every year.
- Federal and provincial tax-on-tax cost Canadians an average 2.5 cents/litre, or $82 a year for a two-car family, or $1.7 billion nationally.
- Taxes make up nearly 29 per cent of the pump price for gasoline.
- There is a strong positive correlation between lower pump prices in provinces with lower gas taxes.
“Gas taxes continue to eat up a disproportionate amount of Canadian household income,” said CTF federal director Gregory Thomas. “But Canadians are not only paying high gas taxes, they are paying unfair tax-on-tax.”
In 2004, the Conservative Party wrote in a national news release: “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.”
“We agree with the Conservative policy commitment of ending the tax-on-tax. The question is: do they still agree with themselves” questioned Thomas.
Every year before the May long-weekend, the CTF holds its Gas Tax Honesty Day as a reminder to motorists that nearly 29 per cent of the price at the pump is taxes, many of them hidden. In addition, the CTF today released new data detailing gas tax breakdowns in every province.
The report showed a clear and strong correlation between provinces with lower gas taxes and lower pump prices.
“The evidence is clear: lower gas taxes mean lower pump prices,” said Thomas. “If Canadians want relief at the pump, the way to deliver it is to cut gas taxes, starting with the GST/HST tax-on-tax.”
Gas and carbon tax hikes in Manitoba and British Columbia will force significant increases in gas prices in those provinces, at $68 and $216 respectively for a two-car family.
The CTF held Gas Tax Honesty Day events in Vancouver, Calgary, Winnipeg, Ottawa and Halifax.
The CTF data with details and provincial breakdowns can be found
HERE.
A graphic breaking down a litre of gasoline can be found
HERE.
A graphic contrasting current tax-on-tax with the CTF's proposal can be found
HERE.
