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11th Annual Gas Tax Honesty Day

Author: Colin Craig 2009/05/13
  • Taxes represent 31 per cent of average Manitoba pump price
  • CTF calls for passage of federal "Gas Tax Accountability Act"
  • End federal 'tax-on-a-tax' situation, cut federal gas taxes

WINNIPEG: The Canadian Taxpayers Federation (CTF) launched its 11th Annual "Gas Tax Honesty Day" today to inform Canadians across the country on the amount of taxes they pay at the pump. The CTF also called on the federal government to pass a Gas Tax Accountability Act and follow through on its commitment to reduce fuel taxes. 

“The provincial government tables a report each year that clearly shows it spends more on roads than it raises in gas taxes,” said CTF Manitoba Director, Colin Craig. “Ottawa should table the same. We drafted a Gas Tax Accountability Act for the federal government to pass that would require 100 per cent of gas tax revenues to be spent on roads."
 
Craig noted that when the CTF launched the Gas Tax Honesty Campaign in 1998, the federal government spent only 26 per cent of what it collected from taxes on gasoline and diesel on “infrastructure.” For 2009, it is expected that the government will spend 146 per cent of fuel tax revenue on infrastructure.” However, as “infrastructure” spending includes non-roadway projects, it is difficult to know how much is actually being spent on roadways. The Gas Tax Accountability Act would improve transparency in this area.
 
In terms of taxation, since the beginning of 2009, the average national pump price of gasoline has been $0.85/litre, 37 per cent of which is taxes. In Manitoba, the average price of gas since January 1, 2009 has been $0.83, of which 31 per cent is taxes. Just across the border in Grand Forks, taxes only represented 18.9 per cent of Tuesday’s pump price. 
 
Part of the reason for Canada’s high gas prices is attributed to the fact that the GST is applied on top of other taxes. Eliminating the federal government’s 'tax-on-a-tax' approach was one of Prime Minister Harper’s commitments while in opposition.
 
“Manitoba roads need a serious amount of tender loving care,” added Craig. “It looks like the federal government now spends close to 100 per cent of the fuel taxes they collect on roads, but one can’t say for certain. If Ottawa can’t show taxpayers it’s spending 100 per cent of gas taxes on roads, then it should cut gas taxes.”
 
The CTF’s 11th Annual Gas Tax Honesty Day report, entitled “Are We There Yet?” can be found here - PART 1, PART 2

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