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Cut gas taxes and stop punishing Alberta drivers

EDMONTON, AB: The Canadian Taxpayers Federation is calling on the provincial and federal governments to provide gas tax relief, amid soaring gas prices in Alberta. According to the Canadian Automobile Association, the average gas price today in Alberta hit over $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.”

The Taxpayers Federation says that the rise in gas prices is made worse by the federal government’s practice of taxing other fuel taxes. For example, the federal government currently charges GST on top of the provincial/federal gas taxes and carbon tax.

This tax-on-tax costs taxpayers an extra 1.7 cents per litre or about a $1 when filling up the average sedan. The annual cost to Albertans of the federal government tax-on-tax is over $100 million.

The federal government also capitalizes on the pain Albertans feel at the pump in another way. On average, for every one cent increase in gas prices in Alberta annually, the federal government collects over $3 million more in additional GST.

This equals a big chunk of change considering this past year gas prices are up about 36 cents/litre in Edmonton, and 35 cents/litre in Calgary and Lethbridge.

The Taxpayers Federation is calling on the federal government to eliminate the tax-on-tax and reduce gas taxes to help people save money.

Federal and provincial taxes make up 28 per cent of the total price of gasoline. These taxes cost Alberta drivers over $29 to fill up a minivan.

“Politicians can help improve the cost of living by reducing their tax-take at the gas pumps,” said Lacey. “At the very least, the feds should stop the unfair practice of taxing other taxes.”

The taxes on gas will increase again on Apr. 1, 2022 when the carbon tax goes up to 11 cents a litre from 9 cents a litre.

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