ST. JOHN’S, N.L.: The Canadian Taxpayers Federation is calling for Premier Andrew Furey to make his temporary gas tax cut permanent, as Newfoundlanders and Labradorians continue to struggle with high gas prices. This follows the release of the 26th annual Gas Tax Honesty Report which highlights the substantial tax burden at the pump.

“Newfoundlanders and Labradorians are already paying 35 per cent of their gas bill in taxes and the looming expiration of the provincial gas tax cut will only make things worse,” said Devin Drover, CTF Atlantic Director. “Furey’s temporary cut has provided much-needed relief, but if it’s allowed to expire, families across the province will face an immediate and painful increase in their cost of living.”

Currently, the provincial government charges 8.5 cents per litre in taxes, which is down from 16.5 cents after Furey introduced a temporary cut in June 2022. However, this cut is set to expire on March 31, 2025, which could lead to a potential spike in gas prices.

“Furey has the power to prevent this tax hike and keep more money in the pockets of hardworking Newfoundlanders and Labradorians,” said Drover. “We’re calling on him to extend this gas tax cut permanently, ensuring that families aren’t hit with higher costs at the pump next spring.”

According to the CTF’s Gas Tax Honesty Report, provincial taxpayers currently pay about 66 cents per litre in combined federal and provincial taxes when they fill up. In addition to the provincial gas tax, this includes the federal carbon tax, which adds about 17 cents per litre. A second carbon tax, embedded in federal fuel regulations, adds another five cents per litre. The federal excise tax is 10 cents per litre. The remainder comes from harmonized sales tax, which is applied on top of the gas price after all other taxes have been added.

“With so much of the price at the pump going to taxes, the last thing families need is for one of those taxes to go back up,” said Drover. “We need leadership from Furey to ensure this doesn’t happen.”

The CTF is also calling on Prime Minister Justin Trudeau to follow Furey’s example by cutting the federal carbon tax, which has significantly increased the cost of gasoline across the country.

“Furey showed leadership by reducing the provincial gas tax and now we need our federal leadership to follow suit,” said Drover. “Trudeau should do his part by cutting the carbon tax, which continues to hurt Newfoundlanders and Labradorians every time they fill up.”