OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal and provincial governments to scrap all carbon taxes and cut gas taxes to ease the pain of high gas prices.

“Drivers are feeling the pain of high gas prices and taxes are making things more expensive,” said Franco Terrazzano, CTF Federal Director. “Canadians even pay taxes on top of taxes when they fuel up.

“Politicians can make life easier for taxpayers by cutting gas taxes.”

At current gas prices, total taxes in some cities cost up to 65 cents per litre of gas.

The federal government and some provinces charge a sales tax on top of other fuel taxes. That means that as the price of gas and fuel taxes increase, the tax-on-tax costs Canadian drivers more money.

The federal government imposes a hidden carbon tax through fuel regulations. The regulations require producers to reduce the carbon content of their fuels. If they can’t meet the requirements, they must purchase credits, increasing costs that are passed onto Canadians purchasing gas or diesel.

These fuel regulations currently increase the price of gas by up to seven cents per litre, increasing to 17 cents per litre by 2030, according to the Parliamentary Budget Officer.

The federal government also imposes an industrial carbon tax on oil and gas, steel and fertilizer businesses, among others. About 70 per cent of Canadians say businesses pass on most or some of the cost of the industrial carbon tax to consumers through higher prices, according to a Leger poll.

Federal and provincial governments also impose fuel excise taxes ranging from 7.5 cents per litre to 19 cents per litre of gas.

For more information or to schedule interviews, please contact:

Franco Terrazzano
CTF Federal Director
Phone: 403.918.3532
Email: [email protected]

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