The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Over the past year, approximately 24 per cent of the pump price of gas in Manitoba was taxes. Yes, despite all the talk of record profits among gas companies, the government is one of the biggest price gougers of them all. Our federal government charges an 8.5 cent per litre gas tax and a 1.5 cent per litre Òdeficit elimination taxÓ (remember the national deficit that was eliminated in 1998?). Further, the Province of Manitoba levies an 11.5 cent per litre gas tax. Just to top it all off, Canadians get to pay GST not only on the price of gas, but on top of all the other gas taxes. Now compare our gas taxes with the United States. In Fargo, gas is currently selling for around $3.59 per gallon or approximately 95 cents per litre. This includes a combined state and federal tax rate of about 10.9 cents per litre. Now that gas is selling for over $1.299 in Manitoba, it would be nice to see the Prime Minister keep his promise to provide tax relief once gas surpassed 85 cents per litre. While in opposition, Stephen Harper spoke in favour of ending the ludicrous practice of applying GST to federal and provincial gas taxes and even suggested that Ottawa provide relief once gas prices rose above 85 cents per litre. Now Mr. Harper says the only relief motorists will get at the pump is the cut in the GST. If his response seems troublesome, it pales compared to the opposition leader, Stephane Dion, who keeps floating the idea of a carbon tax. For years, the Canadian Taxpayers Federation has advocated provincially and federally that gas taxes should be used for what they are meant for Ð roads. Fortunately, the provincial government has listened. In 2004, the NDP government introduced a law that ensures 100 per cent of gas tax revenues are used for road repair and construction. As for the federal government, only seven per cent of what was collected went to roads in 2002. Today, that number has risen to 37 per cent and is expected to climb to 52 per cent next year. To the Prime MinisterÕs credit, he changed Paul MartinÕs funding structure that saw gas tax revenue being used for things like water fountains and canoe museums. Vehicles are a necessity for many Canadians. Despite efforts to use transit, to car pool to work, hockey practice and other activities, gas dependency will continue to be high until an alternative fuel source comes along. In the mean time, all gas tax revenue should go toward roads or be returned to taxpaying motorists through gas tax relief. Now thereÕs a filling idea.
