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CTF: Canadians need tax relief at the pumps

OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal and provincial governments to immediately provide tax relief as prices at the pump soar.

“Canadians are feeling the pain of soaring gas prices and high taxes are making things worse,” said Franco Terrazzano, Federal Director of the CTF. “Politicians could immediately make life a little more affordable by providing tax relief at the pumps.”

Gas prices are soaring across Canada:

The federal carbon tax is set to increase to 11 cents per litre on April 1. This will be the third time that the federal carbon tax has increased during the pandemic. Prime Minister Justin Trudeau said he will increase the carbon tax to nearly 40 cents per litre of gas by 2030. The federal government is also implementing a second carbon tax through fuel regulations that could add an additional 11 cents per litre.

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.

South Korea, India, Poland, New Jersey and 25 Indian states and union territories are cutting fuel taxes. American President Joe Biden is considering gas tax cuts. Florida Governor Ron DeSantis proposed a gas tax holiday and Ontario Premier Doug Ford said he would reduce provincial fuel taxes before the next budget.

“The federal government is continuing to make the tough times tougher by hiking the carbon tax,” said Terrazzano. “Canadians need relief and that means the feds and provinces should immediately reduce the tax bill at the pumps.”

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