FREDERICTON, NB: As New Brunswick motorists fill up their tanks this May long weekend, marking the traditional launch to the summer driving season, the Canadian Taxpayers Federation (CTF) says the amount of tax they pay to fill their tank is on the rise.
In just the last five years, federal/provincial gas taxes are up by 25 percent, or 7.8 cents per litre. That means that in 2014, you pay $3.90 more tax on a 50 litre tank of gas in federal/provincial taxes (total tax $19.50), than you did just five years ago.
There are two reasons for this increase. First, the provincial gas tax was increased by 2.9 cents per litre in 2011. Secondly, the 13 percent HST is applied to a higher base price than five years ago -- gas in Fredericton is running about $1.33/litre; in 2009 it was just 92 cents.
“As the price of gas continues to go up, NB drivers lose big to governments who just stand by and rake in the cash,” said Kevin Lacey, Atlantic Director with the CTF from the Esso on Sunset drive in Fredericton.
The CTF is calling on the federal government to scrap the 1.5 cents per litre federal “deficit elimination” gas tax and end the practice of both federal and provincial governments taxing a tax.
Under the terms of the HST agreement between the provinces, the sales taxes are applied to the price of gasoline plus the federal and provincial excise taxes, making a portion of it a tax on tax. The tax on tax in New Brunswick costs 3 cents per litre or about $1.80 per fill up. In total federal and provincial governments raise $39.5 million extra cash out of the pockets of taxpayers.
The CTF is asking Premier Alward to support Nova Scotia Premier Stephen McNeil’s call to change the Atlantic HST agreement between the provinces to eliminate the tax on tax on gasoline. A change to the agreement would require the support of the federal government as well.
“It’s time Premier Alward jumped on board with Nova Scotia Premier Stephen McNeil and end this gas tax on tax once and for all,” said Lacey.
The CTF sent an open letter to five federal party leaders today, demanding that if the budget is balanced as expected, Ottawa keep its hands off the $606 million in ‘deficit elimination tax’ it plans to collect this year, and give it back to Canadian drivers.
“We’ve suffered with this penny-and-a-half per litre rip-off for nearly 20 years now,” said CTF Federal Director Gregory Thomas. “The Harper government is projecting a surplus. Why do they need $606 million in deficit reduction tax?”
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