Reid Calls on Government to Cut Gas Taxes

Carleton Place – Local Member of Parliament Scott Reid today called on the federal government to provide immediate tax relief for Canadians facing record prices at the gas pump.

Ontarians pay around 25 cents per litre in federal and provincial excise taxes, including a charge that Paul Martin, while Finance Minister, first imposed in 1995 as a “temporary” measure to reduce the federal deficit. On top of this, the federal government charges GST on the combined cost of taxes and fuel.

Experts have revealed that due to the GST, every time the price of gas rises by a single dime per litre, the federal government receives $175 Million in extra annual revenue. This year, prices have been an average 20 cents higher per litre than in 2004.

“Not only is the Martin Government charging a double-tax at the pump through the GST, but it has been profiting every time the price of gas rises,” Reid stated. “Soaring fuel costs are cutting into the budgets of Canadian families, and this is hitting our local communities especially hard. Rural and small-town residents rely on their vehicles every day, and have no choice but to continue filling up.”

“The federal government could easily adopt a number of measures that would help relieve rising gas prices. It’s time that Canadians received the long-overdue break at the pump that they deserve,” Reid concluded. “A Conservative Government would immediately take steps to put money back in the hands of drivers, by reducing the burden of gas taxes and ending federal government profiteering on high fuel prices,”

Stephen Harper recently announced the Conservative Party’s program to lower gas taxes by upwards of 5 cents per litre. It includes plans to:

• End the double-taxing of gasoline, so that GST is no longer charged on top of excise taxes
• Eliminate the 1.5 cent tax increase originally imposed to reduce the federal deficit
• Stop charging GST on gas beyond a certain price level, providing a tax cut when prices reach extreme heights

For more information or to speak with Mr. Reid
Please call (613) 257-8130 or (613) 947-2277.

Posted in: News