Canadian Taxpayers Federation wants to Gut the GST on Gas

The Canadian Taxpayers Federation claims that 21% of the price of gas is tax and is calling on the federal government to eliminate its additional layer to provincial taxes. The tax effects the daily commute, the price of transportation and the price of goods.

“At one time Stephen Harper’s Conservatives were committed to ending the unethical practice of charging the GST on the entire price of gasoline, including provincial and federal gas taxes. We’re hoping he still feels the same way,” the group's Alberta director, Scott Hennig, told CBC.

The Gas Tax Honesty campaign will be held for the 14th time before the May long weekend and Hennig says it serves as a reminder to cash-strapped Canadians that 21% of the price is taxes.

“The evidence is clear: lower gas taxes mean lower pump prices,” said Hennig. “Don’t let politicians fool you into thinking that cutting gas taxes won’t result in relief at the pump.”

Lower prices at the pump mean lower prices at the supermarket too, those trucks got to get their gas from somewhere and there is no special rate for 18-wheelers, whose companies will pass on the cost to consumers.

On a side note, could the revenue that could be generated by the Alberta pipeline be the reason why Harper’s government hasn’t cut the tax and why it is so desperate to get the project done as soon as possible?

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