Canada's 10th Annual Gas Tax Honesty Day Taxpayers Federation repeats call for lower and dedicated gas taxes
Winnipeg: The Canadian Taxpayers Federation (CTF) today launched its 10th annual Gas Tax Honesty Campaign, marking "Gas Tax Honesty Day". The yearly campaign not only kicks off the summer travel season for Canadian motorists, it reminds them of the high taxes levied on gasoline and the percentage that Ottawa spends on roads.
In Manitoba, the average price of a litre of gasoline from May 2007 - April 2008 was $1.15 and of that, 24% were provincial and federal taxes. The average price of $1.15 represents a 20% increase over the May 2006 - April 2007 average price of $0.96.
Filling up in Manitoba was only mildly better than the national average. From May 2007 to April 2008, the average national price per litre of gasoline was approximately $1.16 - a 17-cent increase over the May 2006 - April 2007 average price.
Fortunately for motorists, the amount of federal gas tax revenue that is spent on roads has increased since the CTF began its Gas Tax Honesty Campaign ten years ago.
"In 2002, Ottawa only spent 7% of its gas tax revenue on roads and highways," said Colin Craig, Manitoba Director of the CTF "That figure has risen to 37% for this year and is expected to reach 52% by next year."
Although the amount of gas taxes that Ottawa spends on roads has improved, the Prime Minister has yet to keep his promise to reduce federal gas taxes.
"Stephen Harper promised to cut fuel taxes, he should follow through on that commitment" said Craig. "Ottawa only uses half of its gas tax revenue for roads, so it should cut the portion it isn't using."
The CTF is calling on Ottawa to cut, rather than raise gas taxes by eliminating the 1.5 cent/litre "deficit elimination tax" as a first step (see details, next page); stop taxing taxes by removing the GST charged on federal and provincial gas levies; and reducing the federal levy an additional 2.5 cents. These three measures would reduce the gas tax bite by 5 cents a litre and are, in part, consistent with what Stephen Harper promised in Opposition.
To date, the CTF has delivered more than 150,000 petitions to Parliament Hill demanding lower and dedicated gas taxes. The CTF began its Gas Tax Honesty Campaign in 1999 to inform Canadians of the gasoline taxes they pay at the pumps, to ensure gasoline taxes are dedicated toward roads, and to pressure Ottawa to cut gasoline taxes not spent on road construction. This year's report also discusses the many pitfalls associated with carbon taxes. The 2008 report is available at: www.taxpayer.com