Over the past year, approximately 24% of the pump price of gas in Manitoba was taxes. Yes, despite all the talk of record profits among gas companies, the government is one of the biggest price gougers of them all.

Our federal government charges an 8.5 cent per litre gas tax and a 1.5 cent per litre "deficit elimination tax" (remember the national deficit that was eliminated in 1998 ). Further, the Province of Manitoba levies an 11.5 cent per litre gas tax. Just to top it all off, Canadians get to pay GST not only on the price of gas, but on top of all the other gas taxes. Yes, that's right, it's a tax on a tax.

Now compare our gas taxes with the United States. In Fargo, gas is currently selling for around $3.59 per gallon or approximately $0.95 per litre. This includes a combined state and federal tax rate of about 10.9 cents per litre. Remember the good old days when gas was $0.95 per litre
Well, given Canada's high gas tax burden we'll probably never see those days again.

Now that gas is selling for over $1.299 in Manitoba, it would be nice to see the Prime Minister keep his promise to provide tax relief once gas surpassed
$0.85 per litre. While in opposition, Stephen Harper spoke in favour of ending the ludicrous practice of applying GST to federal and provincial gas taxes and even suggested that the federal government provide relief once gas prices rose above $0.85 per litre.

This month, the Canadian Taxpayers Federation held its 10th annual "Gas Tax Honesty Day" in nine locations across the country. The purpose of the event was to call on the feds to reduce the gas tax rate by 5 cents per litre, which is approximately what he promised while in opposition. But now in government he says Canadians will just have to "get used to higher prices."
He says the only relief motorists will get at the pump is his government's cut in the GST.

If Mr. Harper's response seems troublesome; it pales compared to the opposition leader Mr. Dion who keeps floating the idea of a carbon tax.
Perhaps Mr. Dion needs to fill his government car out of his own pocket.
Not only have so-called "revenue neutral" carbon taxes failed miserably in Europe; they create real hardship for families and do little to curb CO2 emissions.

The other purpose of Gas Tax Honesty Day is to inform motorists as to how much of their gas taxes actually get used for road repair and construction.
On this point, some positive progress has been made.

For years the Canadian Taxpayers Federation has advocated provincially and federally that gas taxes should be used for what they are meant for - roads.
Fortunately, the provincial government has listened. In 2004, the NDP government introduced the "Gas Tax Accountability Act" - a law that ensures 100% of gas tax revenues are used for road repair and construction.

As for the federal government, only 7% of what was collected went to roads in 2002. Today, that number has risen to 37% and is expected to climb to 52% next year. To the Prime Minister's credit, he changed Paul Martin's funding structure that saw gas tax revenue being used for things like bocce ball courts, water fountains and canoe museums.

Vehicles are a necessity for many Canadians. Despite efforts to use transit, to car pool to work, hockey practice and other activities, gas dependency will continue to be high until an alternative fuel source comes along.

In the mean time, 100% of gas tax revenue should go towards roads or be returned to taxpaying motorists through gas tax relief. Now there's a filling idea.