article by Stephen Dafoe
The Canadian Taxpayers Federation called on the provincial and federal governments to provide gas tax relief for Albertans through lower gas taxes, following gas prices in the province soaring past $1.40 per litre.
“Higher gas prices mean more money for politicians and less cash in the pockets of Albertans,” said Kevin Lacey, Alberta Director with the Taxpayers Federation. “It’s time for our politicians to address these high gas prices by reducing taxes and scrapping the unfair federal tax-on-tax scheme.”
CTF says the hit is worsened because of the federal government’s policy of charging GST on top of the provincial/federal gas taxes and carbon tax, a move that results in an additional 1.7 cents per litre or about a buck a fillup on a sedan.
The tax watchdog organization says for every one-cent gas increase at the pumps in Alberta, the feds collect more than $3 million in additional GST.
Given federal and provincial gas tax accounts for 28 per cent of the price at the pump, CTF wants the federal government to drop the tax-on-tax to give people some relief.
“Politicians can help improve the cost of living by reducing their tax-take at the gas pumps,” Lacey said. “At the very least, the feds should stop the unfair practice of taxing other taxes.”
Lower gas taxes remain to be seen. Gas prices will increase again Apr. 1 when the carbon tax increase from nine cents per litre to 11 cents per litre.