• CTF calls for dedication of 50% of gas taxes to roadway development
  
• CTF challenges all provincial & municipal politicians to support Municipal Roadway Trust
  
• New report shows federal government spends less than 3% of all gas tax collections on roads and less than 10% on ALL infrastructure projects
  
• Canadians asked to nominate Canada's Worst Highway and CTF national petition campaign continues

CTF study (275 KB)

WINNIPEG: The Canadian Taxpayers Federation (CTF) kicked-off its 5th annual Gas Tax Honesty Campaign with Gas Tax Honesty Day, held each year prior to the May long weekend.

Big governments - not big oil - making the biggest profit at pumps -
" Over the past year motorists in Manitoba paid almost 38% in taxes at the pumps per litre of fuel," stated CTF provincial director Adrienne Batra, wearing a hard hat and reflective vest to depict the need for more construction work on Manitoba's roads. "Of course big oil can do a much better job of educating consumers about price fluctuations in their product, but repeated studies have found no evidence of price collusion at the pumps. But what our work shows is big time tax gouging by government each time we fill up."

Ms. Batra also outlined the CTF's Municipal Roadway Trust model that directs 50% of federal gasoline tax revenues toward roadway construction/improvement. A challenge was also issued to all provincial and municipal politicians to embrace this model as the "real deal" for Canadian cities. "Come June 4th we are strongly encouraging the new Premier of Manitoba to go to Ottawa and demand a better deal for the cities in our province."

Other recommendations include:

• Elimination of the 1.5 cent/litre deficit reduction surtax added to the federal gas tax in 1995;
• Elimination of HST and GST charges on the tax component of the pump price; and
• Service stations visibly identify the pre- and post-tax components on the price of a litre of gasoline.

Gasoline taxes are akin to highway robbery
In 2001/2002, the feds collected $4.76 billion in fuel taxes but only spent $119 million - a paltry 2.5% - Transport Canada transfers for highways. When all infrastructure projects - as defined in the Public Accounts - are factored in, the amount still represents less than 10% of all gas taxes collected since 1993. "Gasoline tax revenues are filling up government coffers, while motorists shake, rattle and roll on Canada's deteriorating roads and highways," added federal director Walter Robinson.

Dedicate fuel taxes to roadway spending
Gasoline taxes are a user fee applied to motorists. Adopting the CTF's Municipal Roadway Trust model would return more than $2 billion - each year - directly to municipal governments to help pay for local roadway maintenance and improvement. The Municipal Roadway Trust will plow back $19 million for roads in Halifax, $335 million in Toronto, $68 million in Ottawa and $118 million in Vancouver. Disbursements through this program would be audited by the federal Auditor General.

The "real deal" for Canadian cities: What does the next Prime Minister think
" Taxpayers deserve to know where the Liberal leadership aspirants - one of whom will become the next Prime Minister - stand on devoting gas taxes for municipal roads," said Robinson. "By assuring a flow of money for roadway improvements and maintenance, local councils would then have the flexibility to re-allocate their current roadway budgets which are derived from property taxes to other infrastructure priorities."

CTF invites Canadians to nominate Canada's Worst Highway
Taxpayers have the opportunity to nominate Canada's worst highway on the CTF's website www.taxpayer.com under the "Highway from Hell" icon and in May/June edition of The Taxpayer magazine. Entries will be collected throughout the summer months; Canada's Worst Highway will be announced in September 2003 with winners receiving a free wheel alignment.