• CTF to "Gas Up" cities debate with $40 Million cash infusion for Winnipeg roads
• Taxpayers proposes Municipal Roadway Trust model for immediate $2.2 billion national infrastructure investment
• Feds and provinces STILL gouge 42% at pumps across the nation
• National petition campaign to lower excess gas taxes continues

Gas Tax Honesty Day Report

Winnipeg: The Canadian Taxpayers Federation (CTF) today launched its 4th annual Gas Tax Honesty Day (GTHD), a public awareness campaign to lower gas taxes and fix roads. Along with a news conference, the CTF also released its 4th annual GTHD report entitled Filling the Infrastructure Gap.

The report's key recommendations include:

• Directing $2.2 billion in federal gas taxes to a Municipal Roadway Trust;
• Returning $40 million of federal fuel taxes paid by Winnipeg motorists to the City of Winnipeg for road renewal projects;
• Cutting the excess federal gasoline tax from the pump price;
• Ending the 1.5 cent/litre gas tax surcharge implemented in 1995 to fight the deficit;
• Elimination of GST and HST on taxes at gas pumps; and
• Further posting of pre- and post-tax pump prices by ALL gasoline retailers.

Gas taxes and the cities debate
"In four short years since the CTF launched Gas Tax Honesty Day, public opinion has shifted away from a focus on big oil to the real gas gougers - the federal government," said CTF provincial director Victor Vrsnik. "Gas taxes are a user fee that should be plowed back into roads. The emerging cities debate urgently underscores this argument."

Municipal Roadway Trust
"Last year Ottawa raked in over $4.8 billion in gas and excise tax revenues but only returned a paltry 2.4% or $113 million in the form of transfers for provincial roadway development. And even if all infrastructure funding mechanisms are added in, Ottawa is still returning less than 20% of its tax take from motorists at the pumps," added Vrsnik.

The CTF proposes a Municipal Roadway Trust program that would devote $2.2 billion of federal gas tax revenues annually for three years (renewable by Parliament) for municipalities to draw upon for roadway expenditures. Accountability would be maintained with annual reports from municipalities, verifiable by the federal Auditor General with opportunity for provincial piggy-backing efforts.

"Our model provides immediate cash for stretched urban regions and provides federal accountability for spending of federal tax dollars."

Government Gas Gouging
"Last year Canadian motorists paid an average of 42% in taxes each time they filled up at the pumps," noted Vrsnik. "Gas tax honesty day blows the whistle on this tax grab and serves to remind politicians that taxes should be used for public goods and services - like the infrastructure needs in our major urban centres."

End the deficit surcharge - now
"In 1995, Paul Martin slapped an extra 1.5 cent/litre tax at the pumps to help fight the deficit. But we haven't had a deficit for five years. This 1.5 cent tax should be axed," concluded Vrsnik. "Canadians continue to pay tax on tax at the pumps with GST charged on top of everything else. This double-dipping taxation is a blatant cash grab. Ottawa should end it immediately. With continued pressure, we can force Ottawa to help our cities and also lower gas taxes."