HALIFAX, NS: As Nova Scotia motorists fill up their tanks this May long weekend, the launch of the summer driving season, the Canadian Taxpayers Federation (CTF) says the amount of tax they pay to fill their tank is on the rise compared to just a few years ago.
New gas tax numbers were contained in the CTF’s 16th Annual Gas Tax Honesty Report that can be found HERE
In just the last five years, federal and provincial gas taxes are up by 19 percent, or 7 cents per litre. That means that in 2014, Nova Scotia motorists pay $3.50 more on a 50 litre tank of gas in federal and provincial taxes (total tax $22.00) than they did in the Gas Tax Honesty Report in 2009.
There are two reasons for this increase. First, in 2010 a two percent increase in HST was implemented. Second, the 15 percent HST is applied to a higher base price than it was five years ago -- gas in Halifax is currently averaging $1.366/litre; in 2009 it was 96 cents.
Added together taxes amount to 31% of the total price of gasoline.
“High gas prices means governments collect more tax. Its time for government do the right thing and use some of these new revenues to provide relief at the pumps,” said Kevin Lacey, Atlantic Director with the CTF.
The CTF estimates that for every one cent per litre that the average gas price increases over a whole year, the government collects $2.4 million more from drivers ($1.6 million to the Nova Scotia government and $808,035 to the federal government).
Nova Scotians also pay some of the highest gas taxes in Canada. Only Quebec and British Columbia (which has a carbon tax) pay more. Halifax residents pay $9.50 more in taxes on gas per 50 litre fill up than those living in Calgary, even though the before tax price of gas is less in Nova Scotia.
“Don’t let any politician tell you there is nothing they can do about the high price of gas -- over a third of the price is taxes,” said Lacey.
The CTF is calling on federal and provincial governments to end the tax on tax and to scrap the 1.5 cents per litre federal “deficit elimination” gas tax.
Tax on tax is the result of sales taxes being applied to the price of gasoline on top of the federal and provincial excise taxes, meaning motorists are being taxed on government taxes.
The CTF commends Premier McNeil for saying he supports removing the tax on tax on gasoline, but wants to see him move quicker.
The tax on tax in Nova Scotia costs 4 cents per litre or about $2 per fill up. Governments take $43.3 million a year from Nova Scotia drivers as a result of taxing taxes.
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.
These two measures would save taxpayers about 5.5 cents per litre.
“High gas prices means a governments collect more gas tax. Its time for governments to provide some relief at the pumps and reduce some of these taxes,” added Lacey.
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