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“It’s time to Axe the Tax-on-Tax”

Author: Scott Hennig 2011/05/26

CTF’s 13th Annual Gas Tax Honesty Day

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EDMONTON, AB: Marking its 13th annual Gas Tax Honesty Day, the Canadian Taxpayers Federation (CTF) is renewing its call for Prime Minister Stephen Harper to stop the practice of charging GST on top of provincial and federal gas taxes – the tax-on-tax.
 
“At one time Stephen Harper’s Conservatives were committed to ending the nefarious practice of charging the GST on the entire pre-tax price of gasoline and the provincial and federal gas taxes, we’re hoping he still feels the same way,” said CTF National Research Director Derek Fildebrandt.
 
In 2004, the Conservative Party wrote in a national news release: “The fastest and easiest way to give Canadians relief at the pump is for the federal government to stop charging GST on top of gasoline excise taxes. It’s time to axe the tax on the tax.”
 
Every year around the May long-weekend, the CTF holds its Gas Tax Honesty Day as a reminder to motorists that over 21 per cent of the price at the pump is taxes, many of them hidden.  In addition, the CTF today released calculations detailing gas tax breakdowns in every province.
 
Speaking from a gas station in Edmonton, Alberta director Scott Hennig stated, “It’s ironic the federal government is demanding oil and gasoline companies come to Ottawa to explain their pricing, when government taxes are responsible for over a fifth of the price at the pump and they are taxing other taxes too!”
 
“We can have a debate on what the appropriate level of taxation should be, but charging tax-on-tax is just wrong,” said Hennig.
 
The CTF calculations also found that provinces with lower gas taxes see most of those savings passed on to consumers. “The evidence is clear: lower gas taxes mean lower pump prices,” said Fildebrandt. “Don’t let politicians fool you into thinking that cutting gas taxes won’t result in relief at the pump.”
 
The CTF is holding Gas Tax Honesty Day events with press conferences in Vancouver, Edmonton, Winnipeg, Ottawa and Saint John.
 
Details and provincial breakdowns can be found HERE.
 
A graphic contrasting current tax-on-tax with the CTF's proposal can be found HERE


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