The Canadian Taxpayers Federation (CTF), a national taxpayer advocacy group, today called on both the federal and provincial government to end the practice of charging taxes on taxes for gasoline. At present, the HST is calculated based on the base price of gas plus the provincial and federal excise taxes.

“Newfoundlanders are paying $26 in tax every time they fill up their tank,” said CTF Atlantic Director Kevin Lacey in St. John’s. “Even worse, Newfoundland motorists are paying for the government to tax its own taxes. It’s just wrong.”

Numbers calculated by the CTF shows that it costs drivers about 3.4 cents/litre just to pay taxes on top of taxes for gasoline. In total the provincial and federal government collects about $22.8 million in taxes on taxes or about $2 for every fill up.

The CTF is pointing out that while taxpayers struggle with the high costs of gasoline, the federal and provincial governments stand to make millions in extra tax revenue.

The maximum regulated price today is 26 cents more than it was just three years ago. For every 1 cent a litre per year the gas price increases, governments earn over $700,000 just in regular unleaded gasoline.

“The government claims there is nothing it can do about high gas prices. Taxpayers shouldn’t accept this explanation since governments stand to make millions thanks to high prices,” added Lacey.

About 32 per cent of the total gas price in Newfoundland & Labrador is federal and provincial taxes.

The CTF released figures in its Gas Tax Honesty report in provincial capitals across Canada, urging federal and provincial politicians to take action to give drivers a break from high gas taxes and high prices.