P.M.: No Gas Tax Cut Coming
Posted May 17, 2007 12:00 pm.
This article is more than 5 years old.
Like the gasoline you pump into your tank, it’s something you don’t really see. But your wallet knows it’s there. It’s tax, and between the federal government and the province, you’re paying through the nose – and the hose – every time you stop to lap up your litres at a filling station. An incredible 34 percent of your gas dollar goes to pay the taxman. And you’d better get used to it. Even though Prime Minister Stephen Harper vowed to cut gas taxes two election campaigns ago when the Liberals still had a stranglehold on power, now that he’s in office, he doesn’t seem to think it’s such a good idea.
During an appearance in the GTA Thursday, Harper counters that the Conservatives’ decision to slash the GST overall will have a lot better effect on the economy – and that includes motorists. As for his former vow? “That’s not our plan at the moment,” he answers. “We became convinced there was a limited amount we can do helping consumers with gas prices.”
That doesn’t sit well with the Canadian Taxpayers’ Federation, which calculates the feds will rake in a whopping $7 billion from gas taxes – and that profit goes up as prices continue to escalate. The group staged a stunt at a station in Ottawa Thursday, giving drivers back the amount they lost to the levies. Some received as much as $17 in return. The group’s founder doesn’t believe government claims the federal coffers can’t afford the cut. “Ottawa has lots of room to cut … gas tax, and still spend in priority areas in roads, hospitals and national defence,” contends John Williamson.
Which brings us to another politician, a man with a plan. His name is Joe Tascona and the Tory MPP from the Barrie area introduced a private member’s bill at Queen’s Park Thursday that won’t change the price of gas, but could let you know when it’s about to increase. His “Gas Prices Notice Act” would force companies to inform you 72 hours before a pump jump – or face big fines. “I think the industry has an obligation to better explain why their prices fluctuate the way they do,” he insists.
Consumers would likely love the idea, but don’t expect it to happen. Private member’s bills almost never become law and most expect this one won’t be any different.
How much are you really paying in taxes during a fill-up? (.pdf file)
