ST. JOHN’S, NL: The Canadian Taxpayers Federation (CTF), a national taxpayer advocacy group says hidden taxes are gouging drivers in Newfoundland and Labrador every time they fill up at the pumps.

The CTF is calling on the federal and the Newfoundland and Labrador governments to stop charging taxes on other taxes for gas. At present, the HST is calculated on the price of gas that includes the provincial and federal excise taxes resulting in a tax-on-tax.

“We can debate the level of taxes that governments should put on gasoline, but surely we can all agree that governments shouldn’t be taxing their own taxes,” said Kevin Lacey, Atlantic Director with the Canadian Taxpayers Federation from St. John’s, Newfoundland.

The Federation’s Gas Tax Honesty report, which is released in provincial capitals across Canada, shows that on top of the 10 cent per litre federal gas tax and the 16.5 cent per litre provincial gas tax, Newfoundland drivers are paying about 3 cents a litre (1 cent to the federal government, 2 cents to provincial) just to pay taxes on the taxes. On a 60 litre fill up that adds up to $1.80 and over the course of a year Newfoundland drivers in total will shell out an extra $35.8 million.

You can find a full copy of the Federation’s Gas Tax Honesty Report HERE

The tax-on-tax in Newfoundland is about to get worse before it gets better. If the provincial government follows through with a promised 2 percentage point HST hike, the tax-on-tax will go up to 4 cents a litre earning the provincial government an extra $10 million.

“Bad enough you’ll pay more on just about everything you buy, the government will even charge more taxes on their own gas taxes,” added Lacey.

The CTF is also calling on the federal government to eliminate 1.5 cents-a-lire “deficit elimination” gas tax. The tax was introduced in 1995 to balance the budget, when the budget was balanced in 1997 the tax stayed. It survived 11 surpluses between 1997 and 2007, this year the federal government is projecting a balanced budget.

“It shouldn’t be too much to expect the Harper government to keep the commitment made to drivers, when the budget is balanced the tax comes off, now let’s get on with it and cut drivers a break,” said Lacey. 

About 35 per cent of the total gas price in Newfoundland is made up of tax.