Don’t think our premise that cheaper gasoline taxes are a “gateway drug” getting British Columbians hooked on cross-border shopping? Well, you’re ignoring the facts.
The Business Council of B.C. released numbers last week showing that same-day trips to the U.S. from B.C. increased 143 per cent from 2009 to 2012. More than 5.7 million same day trips south were made last year.
The BCBC conservatively estimates a $1 billion economic drain south.
Greater Vancouver drivers pay 49 cents per litre in gas taxes. This is the highest gas tax rate in North America – save for Montreal’s 50 cents. But just a few miles away in Washington, drivers pay 15 cents per litre in tax.
That’s a 34 cent per litre price gap, just in taxes.
Amazingly, when you take out gas taxes, convert gallons into litres, and American into Canadian currency, the cost of a litre of gas in Surrey, B.C., and Blaine, WA, is virtually identical: in early May, it was 98.9 cents in Surrey, 95 cents in Blaine.
Yet, Canadians going south and filling up a 50 litre tank pay $18.95 less than they would here. All but a twoonie of those savings are due to gas taxes. In fact, if no gas taxes existed on either side of the border, that tank would cost $49.45 in Canada and $47.50 in the U.S. – and we would rarely hear of anyone crossing the border to fill up.
The lower the taxes, the cheaper the gas.
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey