TORONTO, ON: The Canadian Taxpayers Federation (CTF) today called on governments to end the tax-on-tax practice for gasoline and diesel, marking the organization’s 15th annual Gas Tax Honesty Day.
The CTF called on both federal and provincial governments to end the practice of calculating the GST or HST after they’ve already levied provincial and federal excise taxes on gasoline, thereby taxing their own taxes. The result has been governments collecting an extra $1.6 billion from unsuspecting motorists. The CTF also renewed its call for governments to ensure all tax money collected from drivers be earmarked exclusively for streets and roads and not diverted for other purposes.
“Canadians are paying $24 in tax every time they fill up their tank,” said CTF Federal Director Gregory Thomas. “The average two-car Canadian family will pay $1,262 a year in gas tax this year, with $72 actually being tax charged on other taxes. It’s just wrong.”
Some city drivers get gouged the worst, with a two-car Vancouver family paying an additional $551 per year in gas tax, while a Montreal family pays an additional $97 yearly to cover the local gas taxes.
CTF’s Ontario Director Candice Malcolm warned drivers in Ontario to reject new gas tax schemes, or “revenue tools” as Ontario Premier Kathleen Wynne describes them, similar to Vancouver’s.
“This government isn’t even transparent about the current levels of taxation on fuel,” said Malcolm. “And now they want to gouge drivers in the GTA with additional taxes to pay for a multi-billion dollar urban transit system? Taxpayers have had enough.”
Find the complete 2013 CTF Gas Tax Honesty Report here
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