The Canadian Taxpayers Federation (CTF) held a press conference today to mark its 15th annual Gas Tax Honesty Day. The federation holds the annual event to educate motorists about how much they’re paying in fuel taxes at the pumps and to draw attention to how the money is spent.
This year the CTF renewed its call for Ottawa to pass a Gasoline and Diesel Tax Accountability Act and end the tax-on-tax situation at the pumps. The Gasoline and Diesel Tax Accountability Act (similar to legislation in Saskatchewan) would require Ottawa to spend all the gas tax dollars it collects at the pumps each year on road construction and repair.
“Plain and simple, Ottawa should pass a law to ensure every dollar it raises in fuel taxes is put back into road construction and repair,” said CTF Prairie Director Colin Craig. “The other thing Ottawa needs to do is stop charging the GST on top of other fuel taxes. It’s time to end the tax-on-tax situation.”
The tax-on-tax situation occurs as a result of the federal government continuing to apply the GST on top of other fuel taxes; something Prime Minister Harper promised to end while in opposition. This year the tax-on-tax component will cost Canadians and additional $1.6 billion.
During the month of April, taxes comprised 26 per cent of the average pump price in Saskatchewan. This is just under the national average of 29 per cent.
Click here to view the CTF’s 2013 Gas Tax Honesty Day report.
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