Don't like 99.9 cent gasoline <b>BLAME THE GOVERNMENT</B>
Author:
David Maclean
2005/08/09
REGINA: In light of gas prices reaching the 99.9 cent per litre mark in the Regina area, the Canadian Taxpayers Federation (CTF) is reminding taxpayers that 38 per cent of the price of gasoline is comprised of taxes from provincial and federal governments.
"We can't control the international price of oil or world events, but we can control our politicians," said CTF Saskatchewan Director David MacLean. "If Canadians want relief at the pumps, we must point our fingers directly at federal and provincial politicians who have imposed upon us an astronomical 38 per cent rate of taxation."
The CTF is calling on Ottawa to eliminate the 1.5 cent/litre deficit elimination tax as a first step; stop taxing taxes by removing the GST (and HST where applicable) charged on federal and provincial gas taxes; and reduce the federal levy by 2 cents. These three measures would reduce the gas tax bite by 5 cents a litre. To date, the CTF has collected more than 115,000 signatures in favour of its gas tax cut initiative.
Gas tax facts:
- Of the $4.5-billion collected in federal gasoline and diesel taxes in 2004-2005, Ottawa returned a paltry 7.2% or $324-million back in provincial transfers for road and highway development. In addition, Ottawa collected $1.198-billion in gasoline GST revenues.
From May 2004 to April 2005 - the average cost of a litre of gasoline paid by Canadian motorists was approximately 84 cents. Taxes account for an average 38% of the pump price.
- GST is charged on the full pump price, gasoline taxes included. It is a tax on tax. For every 10 cent increase in the price of gasoline, Ottawa's GST revenues rise by $175-million.
- As a deficit reduction measure in 1995, Ottawa increased the federal gasoline tax from 8.5 to 10 cents per litre. The deficit was vanquished seven years ago, but the tax remains.
"What stings most for taxpayers is that the money siphoned out of our wallets doesn't even go to fixing our roads and bridges," added MacLean. "If Canadians want reasonable gas prices, we should all demand government stop stealing our gas money."