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What do you think would be a reasonable amount of tax for governments to collect on gasoline?
Click here to have your sayA report last year by Liberal MPs investigating the gasoline industry failed to demonstrate any illegal gas price fixing among Canadian oil companies. The government's "price collusion" bloodhounds met with hundreds of people, turning over every stone. Except one. They disregarded the scent that led to price fixing and consumer gouging in their own backyard.
The 1999 annual average retail cost of regular unleaded self-serve gas in Canada is 55.1 cents per litre. Of that price 28.9 cents -- or 53 percent -- went directly into federal and provincial coffers in the form of taxes. The remaining 26.2 cents covered the cost of delivering the fuel from the ground to your tank-refinery costs: 6.7 cents; marketing and retail margin: 4.7 cents; and crude costs: 14.8 cents per litre.
The provinces and Ottawa divide the spoils of gas taxes haphazardly. Provincial taxes vary from 16.5 cents per litre in Newfoundland to nine cents in Alberta. Ottawa siphons off another ten cents per litre in excise tax, plus GST.
The federal and provincial gas taxes do not even include all the indirect taxes the oil companies and service providers pay, such as business tax, property tax, corporate income tax, payroll taxes and GST.
A 1996 study of the evolution of gas prices by Statistics Canada economists Marc Prud'homme and Klaus Kostenbauer showed that the price of gas (less taxes) adjusted for inflation actually fell by 26 percent between 1957 and 1995.
In 1957 taxes averaged slightly less than 29 percent, or 2.8 cents for every 9.5 cents paid on a litre. Fast forward four decades to our 53 percent paid to federal and provincial treasuries-and that's an 83 percent increase in gas taxes!
But even these numbers understate the level of taxes we pay on gasoline. If the 1999 retail price on gasoline before taxes is on average 26.2 cents and government is taking an additional 28.9 cents, the tax rate is an astounding 111 percent of the price of gas before taxes.
Governments get away with it because gas taxes are hidden: Out of sight, out of mind. Posting gas-tax rates next to the pump price would demolish any misconception about who is gouging whom.
To defend the tax burden, motorists are fed the myth that gas taxes are needed for road renewal. But of the estimated $5 billion in fuel taxes collected annually by Ottawa, a mere five percent finds its way back to our roads. The provinces spend over 60 percent of their share on roads.
So the next time you lament miserable road conditions or curse the high price of gas, remember who is gouging you first and foremost.
It isn't those nasty oil companies.
It's your friends in Ottawa and the provincial capitals.
--from The Taxpayer
What do you think would be a reasonable amount of tax for governments to collect on gasoline?Date: April 26, 2000
Name: Dottie Stewart
Comments:
Gasoline price fixing debate has been on-going for years. Amazingly, it has been unfounded by everyone except the peoples who are not in government or oil companies. Canadians "just let it happen". If the government finds a "cash cow",nothing will be done by them to stop it. Look at the years they let smoking go unnoticed and liquor (I'm a smoker) now maybe gambling. And certainly gas and oil prices. It is well past time that Canadians should get really angry and stop the abuse of government officials...
Date: April 20, 2000
Name: Denny May
Comments:
The only acceptable uses of taxes is for Highway/Road Improvement - no gasoline tax money should go into the General coffers of any government.
Date: April 18, 2000
Name: Bryon Kernaghan
Comments:
The Government, in this gasoline price crisis has promised to lower their taxes weeks ago, but has naturally done nothing, hoping that the warmer weather will bring prices down and they will be able to walk away with huge gobs of our tax dollars. It wouldn't be so bad if the money that gas taxes are earmarked to go to ( i.e. road, hwy.improvements ) would go to the assignment government department and be used for the correct purpose, but instead the taxes simply disappear into the huge maw of the government and highways and roads go to pieces.
Date: April 10, 2000
Name: Bob Scriver
Comments:
Taxes Taxes What are we to do. The Goverment takes takes and takes more taxes when are they going to stop! Gasoline is part of our every day lives and we need it. When will our Goverment realize that poverty stricken people cannot afford to pay more taxes. There is that word again.Do they not realize that people will eventually loose everthing that they worked all there lives for,Of course they know but they do not care about the people of this country. When taxes are started they do not stop. We have so many forms of taxes that most people have to have two or three jobs just to make ends meet.Evenally you have to pay more in Groceries, Clothing, Utilities and more when will it stop.The taxes should not be more than the provincial taxes. 8%
Date: April 09, 2000
Name: b. howells
Comments:
when the goverment brought in the gas tax it was intended for road repair but like ever other good goverment idea this one has gone bad and is costing the taxpayer money like the rest of there "good ideas".
so I guess I feel the goverment should only collet enogh tax to repair the roads along with the other taxes that are to be used for road repair
Date: April 08, 2000
Name: Name withheld
Comments:
The Government seems to be fond of the idea of "user pays". Using that philosophy, our taxes should be no higher than what is needed to support that part of the infrastucture. Perhaps a separate tax for each ministry, to more easily identify where the money is going.
Date: April 01, 2000
Name: Gerry Crawley
Comments:
As a long time longhaul trucker, I am quite well acquainted with both the amount of taxes paid for fuel and the {extreme}lack of maintenance and upgrading done on our hiway infrastructure. Without any doubt at all one may say that the various governments are taxing fuel at too high a level. One may also correctly say that the roads are {in general} in a very bad state. However, I am not aware of any law that states how the government must use fuel {or any other} taxes.
It seems to me that this is very much like giving a youngster unlimited money and no specific guidance of training in its proper use. We citizens bear the responsibility. It is up to us to make the governers of our country practice responsible governance. They have shown historically that they are not able to keep a proper financial house so we must force them to with laws which lay out specifically what may or may not be taxed and at what levels and for what purposes. This needs to be done with direct and ongoing involvement from and with the public.
Too much fuel tax? Perhaps. Maybe the question is what it is being used for. I personally don't mind paying lots when I get value for my money; right now i'm not!
Thank you.
Date: March 31, 2000
Name: Name withheld
Comments:
The Government takes and takes, I for one am tired of using a pencil to see if I have enough for all that is needed just to live. When you work all your life and the Government takes it all in taxes then I say enough. But when the election is called the people of this country will just put them in again. So I say people you better think carefully next time before voting.
Date: March 30, 2000
Name: Phillip Rody
Comments:
A reasonable rate would probably be fifteen percent, but you couldnt expect the government to go for less than 25%. After all right now they are up above that. They are totally happy as folks get disgusted with the dealer and never seem to remember that the government and the big companies make the money, not the guy on the corner with the station. Sadly we can't even look at what should be the best system of highways in the world because the Federal Government doesn't even attempt to put the money back where it is supposed to be spent. Mr. Martin today offered some relief, but only if the Provinces followed suit. Unfortunately doing the right thing for the average Canadian is lost on todays group of politicians.
Date: March 27, 2000
Name: A.Miller
Comments:
I think its incredible how they(the so called government) can hit Canadians withgasoline taxes so high that most of us can`t afford to drive a car, and what are they doing with the money? If they were trying to come up with alternative sourses for power(wich is what they should be using the taxes for) instead of giving each other pay raises and lining their pockets this would be a better place to live.
Date: March 27, 2000
Name:
Comments:
Obviously they(The Government) have a different idea than REAL Canadians.All they do is take,take,take and all we do is give,give,give.Whats wrong with this picture?
Gasoline is only the tip of the iceberg.
We need to put the government back in perspective and trian them how to treat Canadians with dignity and respect.If they keep taking thye`re headed for trouble when the people revolt.
Date: March 24, 2000
Name: Magnus MacGregor
Comments:
As much as I disagree with the current price of gas and I know that there stealing our money (come on $40 a tank!) maybe we should be walking to our destinations or carpooling or taking the bus. We've been polluting the earth for years and years now maybe we should start to do our part to clean up the earth little by little...
Date: March 22, 2000
Name: Laura Finnigan
Comments:
It is absoulutely ridiculous that I should have to pay $40 to fill my tank, when the price without taxes would be approx. $10. I have come to understand that we have to have taxes to accomodate trips to Japan for lunch, etc. by our government, but they're playing a game they're going to lose. People are just going to stop driving. They are going to use alternate forms of transportation such as carpooling, and bussing.
Date: March 20, 2000
Name: Name Withheld
Comments:
The bottom line is the Gov't has a history of not following through on thier responsibilities and mismanaging our money.
If you and I were to manage our finaces the way the gov't does we would all be in jail...why should they get away with it? Broken campaign promises and mismanaged finances should be a criminal offence not an accepted paradigm!
let each province and community look after itself, the Feds have become so dependant on the taxes they can no longer be weaned, it's like the delinquent child that never leaves home.
Like Shawn Connell said in January, I smell a dictatorship (or is it communism?) and am fed up with the imbiciles running the country.
Date: March 20, 2000
Name: L. Vaughters
Comments:
There should be the normal GST. and PST. on gasoline. milk and bread are fuel products as well and they don't get any tax. candles and hydro electric are fuel forms as well they get GST and PST respectivly.
We do not need more Govt. programs to help us. we need more neighbors and associates and friends to help us. We nee the intimacy of communities as our "programs" not interference, lordship, and opression upon us. Give us liberty or give us death! Don't make us "Tax Cows" and don't design your programs to keep the "tax Cows" healthy, educated, or employed. Let us come up with creative solutions for our own communities.
Date: March 18, 2000
Name: Name withheld
Comments:
the gov't should run more efficiently, reduce taxes, get rid of the fuel tax. We are a large country alas gas is a necessity. Tell the gov'ts to get off of the tax wagon
Reduce the number of policticians
Date: March 18, 2000
Name: Bill Henderson
Comments:
I believe the government only uses about 8% of tax collected on highways from a fuel tax revenue so lets give them an 8% tax. If they used 100% of the fuel tax for it's intended use then our highways would be in excellent shape and the tax could then be lowered to an amount egual to upkeep. I wish the government would be responsible for the way they spend my money and ask me how I want it spent.
Date: March 18, 2000
Name: fred marcos
Comments:
The government should take a specific amount not a percentage. The present process in the government's way of putting the blame to the oil companies
Date: March 16, 2000
Name: Ian Wilson
Comments:
In my feable brain I think the Cities and Provinces should get the gasoline taxes..... after all they are the ones that build and fix the road systems.....the Federal government has little or nothing to do with roadways, so give them 1%, and 10% each to the other governments.
Date: March 16, 2000
Name: Name withheld
Comments:
I am getting so sick of being robbed by the government. Being from Saskatchewan, around 53% of our income goes to taxes, including city, income tax, gst and pst. Then there is more being taken when we buy something that we need.
It is getting harder and harder to make it. Then the people who are in charge use the money so wastefully. Honestly, it keeps me up at night. I am afraid for my child. If it is this bad now, how will it be for her ? Maybe when she grows up, 100% of her income will go to the government.
When will it stop?
Date: March 14, 2000
Name: Mary Coughlin
Comments:
The taxes on gas are appalling and seriously handicap industry in Canada.
15% is more than enough.
Date: March 12, 2000
Name: Henry Kopke
Comments:
Taxation on gasoline appears justified, however it should be as a fixed amount per litre. The governments would then increase their take by encouraging the consumption. A percentage is unfair.
Date: March 12, 2000
Name: GREG WEBBER
Comments:
THE TAXES ON GAS IS FINE AND I DON'T THINK THAT IT IS OUTRAGES. THIS LATEST JUMP IN PRICES IS 100 % OIL COMPANIES. THEY SAY BECAUSE THE PRICE PER BARREL DOUBLES SO SHOULD THE PRICE AT THE PUMPS. IT DOES NOT COST ANY MORE TO GET IT OUT OF THE GROUND. SO THE INCREASE IN ALL PROFIT FOR THEM. WISH I COUD DOUBLE MY WAGES EVERY TIME THE PRICE OF LIVING WENT UP
Date: March 10, 2000
Name: Name withheld
Comments:
One cent a gallon would seem reasonable to me. Our governments already collect too many taxes and fees, especially income tax.
Date: March 09, 2000
Name: Name withheld
Comments:
If Gst and pst is acceptable for the majoriy of retail goods,then I would believe that the same tax structure should be acceptable for the gas industry. Thanks goodness I do not own a RV at this time.
Date: March 09, 2000
Name: G. Bell
Comments:
Not one red cent! Given the current highway conditions, it is apparent that the tax dollars collected from gasoline and diesel fuel are not being put back into our highways. Its not just that the highways are a little rough, they are down right dangerous. I wonder how many fatalities it will take before the government will open their eyes and be accountable for the road conditions, which are causing fatal accidents.
Date: March 09, 2000
Name: Name withheld
Comments:
I think what they are charging now is reasonable IF IT WAS USED AS INTENDED - FOR ROAD MAINTENANCE AND CONSTRUCTION! As things are now the taxes should be scaled back to reflect what is spent on the upkeep of our roads.
Date: February 24, 2000
Name: John Wilde
Comments:
The same sales tax as prepared food and durable goods. This is actually too high, in this parish of LA it is 8.75%. For this and the fuel taxes we have the worst roads in the nation.
Date: February 22, 2000
Name: Helena R.
Comments:
20%
Date: February 17, 2000
Name: Flo Evans
Comments:
No one disputes the fact that we are overtaxed on gas, as well on many other commodities. My heating oil bill was $108.00 more in January than it was in December/99.The tax on gas shoud not exceed 3%
bscause G.S.T. is added on to the total, which means we are paying tax on tax. That's a dreadful burden on seniors, who must live on a fixed income.
Your comments will be appreciated.
Flo Evans
Date: February 16, 2000
Name: Bernard Landry
Comments:
The solution is simple ,as the price of gas goes up, our tax goes down accordingly. The govenment then hits the oil companies with a tax for the revenues lost.
Date: February 16, 2000
Name: Name withheld
Comments:
In your December article on who is picking our pockets at the gasoline pumps, you asked for input or suggestions.
On page 60 you printed a chart of prices.What
about a sticker that could be placed on gas pumps where your subscribers are buying gas. Place it
on the pump cover near the price screen. Use only the part on page 60. With the Ontario figures on the stickers as shown, it would certainly get the message out. Today, Feb.16th gas is back in the news once more. U.S. government looking into it.
Date: February 15, 2000
Name: Gary Price
Comments:
I do believe that a .10 cent flat tax is all that is needed, and be used for road repairs. I feel that if our energy cost were lowered the economy of this country would expand to make up for the loss. The fuel cost are a burden on all Canadians, such as the farmers they are paying as I figure it at this time $1.00 a gallon more than the U.S. Farmers, based on cost in our town. This hold true for all segments of industry,with this we are not as competive, and it is costing all of us in jobs and social cost.
Date: February 12, 2000
Name: Wes Omichinski
Comments:
Just by reading everyone else comments on line on this topic, I see that basically eveybody is fed up with being overtaxed on fuel and oil and other related commodities. The part of this topic that anybody has failed to address up till now is that "temperature correction" feature of fuel and gas at the pumps, where the temperature of the product is to be corrected to 15 degrees Celcius. What this means is that you do not receive the true amount of volume that you purchase according to the meter, but instead in the winter time you end up paying for more product than what is pumped into your tank. In the summertime there is supposed to be a turnaround in favour of the consumer, whereby the consumer will receive more fuel than what the meter shows. But as the old saying goes Nobody Gets Anything for Free, because where the sensor is for taking the temperature, the fuel is coming out of the ground. In the summer ground temperature does not rise above 6 degrees Celcius which is a far cry from 15. Despite repeated assurances from the fuel companies and government officials that everything is okay with this type of calculation and there is very little difference between actual volume and corrected volume I still feel that as a consumer we are all getting the shaft from the government and the oil companies. When you look at this loophole the government and the fuel companies have created, not only are we paying too much tax on gas and other fuels, we're paying tax on something that we don't even receive.
Date: February 12, 2000
Name: Wes Omichinski
Comments:
The amount of taxes that are collected on all fuels is more than enough already. This includes all taxes taken in from getting oil out of the ground and fuel into your tank. The government has strong-armed the public long enough and it's about time that they put the monies received from these taxes back into the roads that the taxes were originally collected for. Every time the price of fuel goes up, so does the amount of GST rise accordingly. Which brings this thought to mind: How can the government charge tax on tax when it is supposedly illegal to do so. That is, when you pay for fuel the GST is charged on all taxes involved in producing it as well as on the price of producing these products.
Date: February 11, 2000
Name: Lawrence Vandermeer
Comments:
The whole issue of gas pricing is confusing and infuriating. Why wouldn't the government tax gasoline as it taxes every other product? Add the PST and the GST and be done with it. The problem is that the government knows we need gas, so it gets taxed to the hilt and becomes a cash cow for them. How unfair!
Date: February 05, 2000
Name: Name withheld
Comments:
I have just read through most of the comments on the pricing of gas. Some are a hoot and some are very interesting. All of this changes nothing as Canadians as a whole are fence sitters and Liberal electors and until we as a nation stand together to correct what we think is wrong with our country then the 'elected' government is going to continue doing what it wants regardless of what its citizens think or say. Past experience has taught our government that after a little squealing Canadians will roll over and accept whatever is being dished out.
If we don't like it then we should be doing something - taking responsiblity for the fact that we elected our politicians and WE don't make them accountable for their actions.
Date: February 04, 2000
Name: Anna Stackhouse
Comments:
It would be my opinion that a fair gasoline tax would be equal to the amount spent by all layers of government on upkeep of the roads in the country. However, a fair charge should also be made to inter-continental vehicles which have the use of the roads (perhaps an assessment per kilometer which will be travelled could be assessed as soon as a vehicle enters the country).
Date: February 02, 2000
Name: Justin Cooke
Comments:
I personally think the consumer or even the retailer of gasoline should be charged NO taxes on their purchases/sales. It should be the large OIL companies footing the bill.
These are the same oil companies, while employing thousands of Canadians, are destroying the enviroment and holding back the technology we need to stop or even reverse the harmful effects of the use of their products. They should be penalised for the destructive efforts although not to the point of cutbacks or lost income. Their profit margin, I am sure, could suffer a small decrease in order to benefit the people and their enviroment.
Date: February 02, 2000
Name: Steven
Comments:
I think we should take a note of what the U.S. did a while back and force any revenue from gas taxes to go directly to roads and similar areas. This is one case where U.S. prices will always be less than canadian prices. On a recent trip to Alaska we encountered prices nearing almost $.70/Litre in the Yukon and northern B.C. and as much as $1.06 in Northern Yukon and yet across the border prices dropped to $1.19/gallon.
When converting $/litre and $/US gallon the difference is --
$.70/L is approx. $2.65/US Gal.
$1.19/US Gal. is approx. $.314/L
If the cost of supplying gas is the same in the US then the amount of taxes would be only $.052/Litre or 16.5 percent.
Even with the current exchange rate the price gas should not be this far out.
*Especially when we supply so much of our gas to the U.S.
Date: February 01, 2000
Name: William C. Nickerson
Comments:
Taxes on gasoline should be limited to the provincial sales tax (no GST since there should not be such a thing as GST at all).
If they want to collect funds specifically for use of roads then they should set up tolls (a.k.a. user fees).
Date: January 31, 2000
Name: Name withheld
Comments:
The taxes should be reduced by 20%. Even the americans complain about our high prices and lousy northern ontario roads.
Date: January 31, 2000
Name: Name withheld
Comments:
I think rather than a fixed tax that people should have a ration card allowing for a reasonable amount of gas to be bought at a lower tax level to make daily living afordable. Gas bought above this amount should be taxed at a higher rate and is probably being used for pleasure (ie snowmoblie, speedboat, travel). An approach like this would also tend to make people think more about conservation to reduce consumption.
Date: January 29, 2000
Name: Roland Humphries
Comments:
Wow, you really got us going on that one. Why is
the price of gas such a sensative subject? My fuel
costs are only 20% of my total car costs. Depreciation over a 13 year life amounts to 37%.
Insurance costs 14%, even Repairs cost 12%,
Interest costs 15%,and licences etc. 2% So where's
the beef? If fuel costs too much, use less of it.
A 4-Runner uses twice as much fuel as an Echo, yet
they offer equal comfort for up to four people.
Spending $50 a week driving to work. Why not share
a ride or move closer to work? What is a fair
amount of tax on gas? I guess it depends on your
priorities, goals & objectives. In New Zealand
gas was 92 cents a litre,while deisel was 52 cents
the difference was about 40 cents more tax on gas.
New Zealand imports all its crude oil, that takes
foreign currency,of which they are short, so they
raise the price by taxation to discourage its use.
If urban sprawl, excessive traffic,and burning
fuel are bad, then I guess you raise fuel tax
until drivers get the message. Next question?
What is the right message in a country as large
as Canada? And is it fair to screw the 20% of the
people who live too far from the USA, while encouraging the rest to shop Stateside?
Date: January 18, 2000
Name: Name withheld
Comments:
Two comments. One is that any taxes collected be invested back into our road infrastructure (and surface public transit too). Continued siphoning off into general revenues is almost criminal. I think we'd see taxes come down a lot if the government had to be held accountable for efficient, effective infrastructure investment only.
My second comment is that the total taxes collected by governments far exceed 53%. Within the other 47%, a company and all its suppliers have had to pay property taxes, their own fuel taxes on fuel they consume, royalties on the gas and oil produced, pay their employees who have to earn enough to pay income taxes, and if the companies are lucky enough to earn profits, corporate income tax.
So actual government take is probably closer to 70-80% since each oil and gas molecule has left its underground origin. That's a terribly scary thought.
Date: January 18, 2000
Name: Shirley Foley
Comments:
There is no way the total of all government taxes and levies should be more than the total amount charged by the oil companies. Not only that, but ALL money charged for gasoline, should go directly to roads, bridges etc, and not one cent should go into general revenue
Date: January 17, 2000
Name: Name withheld
Comments:
I think the taxes that are collected should be spent on our roadways. I don't think they should collect any more than 25 or 30% on the gas prices. 53% is way too much. The government is charging way too much and they're not spending it where they should be spending it.
Date: January 12, 2000
Name: Colin Rivers
Comments:
Its not so much the amount of tax they collect, but that they do not spend it on infrastucture of roads and highways in our country. The tax should be directly related to this expense. Collect what you spend or, preferably, spend what you collect on infrstructure. Thanks for your time.
Date: January 08, 2000
Name: Julie Larose
Comments:
I find it unfortunate that Canadians are taxed so high in every way. Significant tax breaks will only come with restructuring and eliminating government excess. However, I would not trade Canada's social safety net for a few dollars in savings. Gas, as well as cigarettes and alcohol, are good taxable items because they are not necessities, unlike food and clothing. If someone does not want to pay, they can chose public transit, car pools, bicycles or walking. If gas taxing can support social programs and discourage overuse of automobiles, then some good is coming out of this evil. I know isolated residents do depend on driving, but are they the ones making a fuss about high prices, or is it the city dweller who drives to the corner store?
Date: January 06, 2000
Name: Dave Andrews
Comments:
In Fort Nelson we pay 73.9 per liter for regular gas.It is hard to say how much the government should tax gasoline, ideally nothing, but that is hardly feasable.If Ottawa only puts 5% of what they collect into the roads now and squanders the rest, than only give them 5%. Canadian's are being taxed to death.
Date: January 04, 2000
Name: george dueck
Comments:
No GST and 10% off on Federal tax. At least that.
Date: January 04, 2000
Name: James Billard
Comments:
The Federal Government has been cooking the books decades and getting away with it because we let them. Every sitting member should be held accountable. The Liberals haven't held up their end of the bargain they made with their Red Book, so its time to turf them out and try someone else. If this begins to happen with some regularity then perhaps their the politicians actions will start to match their words.
Date: January 04, 2000
Name: Shawn Connell
Comments:
Thank you Victor Vrsnik & Readers Digest ( Dec. 1999 The Great Gas Gouge ) for finally revealing the truth about gas prices. For a long time I was curious about the real prices and the amount of taxes collected ( unnecessarily ) at the pump. Your Dec. article clears up the doubt on this mater and is a LONG time over due. Unfortunately the consumer doesn't notice the price difference since we switched to metric in this country ( a scam sold to us by a Liberal government to hide the real cost of things). If we still had Gallons on the pump there would probably more accountability held against the federal government. It's unfortunate that the federal government doesn't allow the gas companies to put the associated taxes on the pump for ALL to see ( quite the scam ). From what the federal government spends of the gas taxes ( cash cow ) on roads they could eliminate their portion ( i.e. excise tax, etc. ) and replace it with the GST ( not a blended tax ) which is the most reasonable tax on it. Then take that applied GST and direct it towards roads and still have some left over. After all with the amount of taxes collected at the pump ever since who knows when, Canada should have a much better National Highway than it does. Removing all those unnecessary taxes would allow the Canadian consumer to share in the an estimated 4.75 billion dollar tax break. Oops, since when would the federal government want to give consumers a break? That would mean taking time out from hosing the consumer out of their hard earned money as they have a history of doing. Then come election time all the people of Canada never remember the neglect that the good old boys inflicted on them, and re-elect them. And they call this a democratic country, when the people don't even get to vote on the Prime Minister. The P.M. gets the job just because he is the leader of the party with the most seats ( smells like a dictatorship to me ).
Date: January 04, 2000
Name: Darryl S. Cook
Comments:
Just after Christmas the price of gas at the local Petro Canada pumps was $.67.9 per litre. Now its up to $.70.9. It just doesn't make sense. One would think that with all of the oil we have off the East Coast, the price would be much lower. There must be some collusion some where when all the companies put the price up on the same day. Another thing that I can't fathom is why do the consumers let this happen. One would think that some kind on consumer organization would be formed to complain strongly about this. Maybe we should all call our politicans and complain about it. Not much good that would do, some of them own service stations.
Date: January 01, 2000
Name: Mariel Redwall
Comments:
My personal opinion is that the government should not be charging any tax on gasoline. Don't they already tax us enough? When the your government even taxes you in death, I think it's time to re-evaluate their actions.
Date: January 01, 2000
Name: Ben Gray
Comments:
I'm frustrated that the government in their arrogance fail (with intentional deception) to let us know that gasolene price fell by 26% when adjusted for inflation from 1957 to 1995. They imply that that they failed to find - but there still might be- "price collusion". I don't think it hurts to check on industry once in a while but an honest government should be honest.
The tax on gasolene should ALL be spent on roads and highways. As soon as they put it into general revenue it becomes tax gouging.
Keep up the good work Readers Digest.
Ben Gray
Date: January 01, 2000
Name: A. M.
Comments:
I think like any other commodity, a 15% (7%+8%) total tax is reasonable.
I don't see why gas should be taxed so much more than anything else. Unless there was a viable alternative. Like electric cars comparabe in every way to gasoline cars.
Date: December 30, 1999
Name: C. MacIsaac
Comments:
Since governments are alive and well, riding on the strong backs of their citizens, it is a good idea not to break the backs of those that serve them.
We have as a society reached a point where taxes can be reduced, and if 53% of the cost of gas is tax only, then it is for a government study group to determine what savings they can pass on to the consumer.
I would guess that they could easily give us a 15% tax reduction, and if they wanted to be generous, perhaps even more.
Date: December 29, 1999
Name: Jonathan Dallaire
Comments:
I think that the government should only get about 20 cents of the price of gas or even less, because the gas prices are outrageous across the province, especially here in Northwestern Ontario at 66.9 cents and 67.9 cents. In Thunder Bay the gas prices vary from 62.9 to 66.9 cents and they haven't gone down lately. Last year in the fall or spring (I can't remember) the gas prices in Thunder Bay got down to 41.9 in the gas war and on average without the gas war they were 52.9. I thionk that the government should freeze gas prices at about 55 cents all across ontario and start putting the tax they get from the gas into the roads like it is supposed to be.
Date: December 29, 1999
Name: Bill Mann
Comments:
The goverment should only be collecting one tax not two the GST and the federal sales tax, also the money collected should go to upgrading roads and bridges not general revenue.
Date: December 23, 1999
Name: Peter Jedicke
Comments:
Gasoline is very inexpensive to produce, so that a competitive marketplace could offer gasoline at less than $0.27 per litre. Yet gasoline is critically important to consumers, so that a competitive marketplace could pay for gasoline at $2.00 per litre or perhaps even more -- which is what consumers in many countries overseas pay.
The answer to your question depends on the answer to the question "what is the legitimate function of government?" If the government has no business interfering in the market, then no tax should be collected. This opinion is not very popular, even though consumers would love to pay less for gasoline. In fact, the government interferes in just about every market.
Perhaps the government should be using taxes to redistribute wealth, so that gasoline tax collected from rich car owners would pay for the social welfare needs of everyone else in our society. This attitude is widely-held by folks who either can not support themselves or are too lazy to do so -- it's almost impossible to tell the difference between these two groups -- and also by folks who are not themselves needy but are nevertheless motivated to help the needy, whether by genuine sympathy or maybe just by the desire to control rich persons. Either way, I am among the significant number of citizens who do not believe that the government should try to implement such re-distribution of wealth.
There are two other answers which I support. First, gasoline taxes should be interpreted as a user-fee for roads and transportation support systems such as safety inspections and police patrols. We have the technology to provide drivers with high-quality, safe, high-speed, high-volume highways and streets, and the drivers should pay for this system through gasoline fees. (I don't really care if the fees are called taxes or something else.) This is the position taken by the CAA and many other advocates of road travel.
Finally, gasoline is a non-renewable resource. Every litre of gasoline that is burned is gone forever. One day, the crude oil resources will run dry. This day may yet be many years in the future, but it is unwise not to plan for the end of oil supplies. Therefore, gasoline taxes should pay for scientific research and technological development in the direction of alternative fuels and alternative transportation systems, particularly private transportation. (Public transportation is mainly intended for needy persons who cannot afford to drive cars, and, as noted above, drivers should not have to pay the expenses of needy persons.) In addition, the burning of gasoline in automobiles is a major source of certain atmospheric pollutants. When oil resources become scarce, the environmental issues will change, as well. So research should include work toward understanding the role of gasoline by-products in the matter of atmospheric pollution, with the goal of ameliorating the negative effects of gasoline by-products in the present and replacing gasoline with less harmful fuels in the future.
Since quality roads and advanced technology are so important, I advocate high gas taxes to support road building, road maintenance and scientific research. How high should the taxes be? Here's my answer: beginning at the current level, gas taxes should rise smoothly over a period of 10 or 15 years so that, at the end of that period, Canadian drivers are paying at least as much as European drivers for gasoline and other fuels. Not long after that, research should have concluded the development of a satisfactory alternative to gasoline as a fuel for private transportation.
Sincerely,
Peter Jedicke
1999 12 23
Date: December 22, 1999
Name: Mike Sumner
Comments:
As long as the political elite of this country are
allowed to continue living off the backs of the average Canadian, voting themselves pay and expense account increases whenever the notion strikes them, (see Lawrence O'Brien, the biggest spending MP in Ottawa last year with regards to travel) there is no incentive for them to take any measures to ease the tax burden on the citizenry.
Take for example, our intrepid Health Minister Mr. Alan Rock who recently put forth a plan to further increase the taxes on cigarettes in order to make it more costly, and therefore less attractive for people, particularly our young, to smoke. HOGWASH!!! This is just another example of our so called government taking the most obvious advantage of a growing public crisis to put more cash in the various provincial and federal coffers. Indeed, as history will attest to, the Canadian public continues, apathetically, to pick up the tab for all the economic and social blunders of this administration and the many that have gone before. (i.e. Health Care, Child Poverty, Homelessness, Resource Mismanagement, Education Reform, etc. etc. etc...)
It is time that our elected officials began to ease the tax burden on the people of Canada, some of highest taxed in the "developed" world, and a good place to start would indeed be in the area of fuel taxation. Bringing the tax on gasoline down to a level which approximates the H.S.T. in Eastern Canada (15%) would certainly be a good place to start. It could be a fair statement that if some measures are not taken in the very near future to put money back into the pockets of working Canadians, the Government may face the very real possibility of tax revolt in this country. Where would our politicians find themselves then? Why, paying for their own gas for their vehicles, buying their own lunches, and paying for their own airline tickets of course, rather than charging it to the people who put them in office in the first place.
Date: December 22, 1999
Name: Ray Gauthier
Comments:
I've read other people's coments and, contrary to popular belief, I think the price of gasoline is about right. If it were cheaper, people would simply drive more. Thus, increasing traffic congestion and the strain on the environment. Perhaps the price is even too low? Until there is a united public outcry and gasoline is truly unaffordable to the masses, there is no motivation to produce emissions free, affordable transportation. I also believe however that the taxes collected should go towards:
1) road maintenance & traffic control
2) environment
3) emissions free - research and development
Date: December 20, 1999
Name: Name withheld
Comments:
7% GST for the federal government and PST at the current Provincial Rates for the provinces, applied at the pump as any other consumer retail sale (except for beer wine and spirits). The present cash cow should be stopped.
Date: December 20, 1999
Name: Ted Bowles
Comments:
Why not use the same % as used for GST and PST?
namely 7% and 8% respectively. Apart from the burden of those hidden taxes directly, there is also the affect they have on the price of all the other goods we purchase which has to be considered,even by those of us who do not own a car.
The roads in Ontario are being ruined by heavy truck traffic travelling in excess of the speed limit.Get all this traffic back onto the railways and so reduce the cost of road upkeep.
Date: December 19, 1999
Name: Donald Davis
Comments:
Your article on the taxes was very good, and I think the taxes should not exceed a fixed price per litre. However I should point out that you omitted several other factors. The first is the temperature compensation factor where we are being ripped off. The second is the jumps in prices that are out of synch with world crude prices, crude goes up gas goes up immediately but what about stockpiles that have to be used. Are we to believe they are non existant. The third is the excessive difference between regular and premium gases.I was lead to believe that that cost to produce premium was far less than that. And the higher the gas goes the more taxes the governments get, thus no incentive to really chamge the status quo.
Date: December 19, 1999
Name: Marvin Gogal
Comments:
A 'fair' tax, if the Canadian government can even imagine the idea, would be the equivalent of what actually gets spent on transportation from gas taxes. The current taxes would be a more tolerable if the largest share of the money collected actually went to transportation or the 'environment'. Instead, it seems most of it goes into general revenue.
I think it would be a great idea to list the associated costs and taxes for each litre, right at the pumps, again. I believe this was done for a short period back in the late 80's. I guess the practice was stopped so that the government could go on the search for who was gouging the public.
The oil companies aren't entirely without blame. I don't think the huge changes in prices by ALL gas stations at the same time, can be attributed to taxes.
The taxes not only affect those that drive (to get to work to pay more taxes), but impact any goods and services that involve transportation and fuel. Things like bus passes, groceries, consumer goods, etc. In the long run everyone is affected.
Date: December 19, 1999
Name: Ralph Woehler
Comments:
I think the amount we pay in taxes at the pumps should be the same amount spent on what it was intended for. If the taxes collected at pumps was intended for highway maintenance then that's what the money should used for, etc.
I feel that it wouldn't matter to most people if the amount spent in taxes per litre of gas were posted. As long as people accept paying higher taxes governments will feel free to continue to gouge tax payers in this country. So far history has proven this.
Date: December 18, 1999
Name: John Jeffery
Comments:
I agree with the process of pointing out the level of taxation on gasoline and the fact that little of it is being spent on general road repair which, except, perhaps, for the Trans-Canada Highway, I thought was the responsibility of the provincial and municipal governments.
I recall a chain of gas stations several years ago posting at their pumps just how much tax was included in each litre. I understand that "somebody" told them they couldn't do that and they removed the signs.
However, the rate of taxation has not changed in recent months but the price has gone sky high. If we reduce the taxes collected in order to keep the prices the same as before, guess who still gets the increase.
Date: December 17, 1999
Name: Brian Gill
Comments:
Having to commute over 140 Km a day to work in Toronto I really feel the pinch of the gas hikes. In protest I have stopped buying gas at all the major gas stations. By dealing with only the independent companies I hope that I am making a statement to the larger companies that if they want my business they had better push back against the Government and their hidden taxes. I think that if only 5% of the taxes are making it to our roads the major gas companies should petition the Government to lower the taxes to this level. I would sugggest that the average constituent petition the Government but we only elect then so they don't have to listen to us. However, when it comes to big business our elected officials are all ears. It is up to the Large Corporations to let the Government know that they (the Government) are hurting their profit margins with these excesive taxes and the only way we end users can force the companies to make a stand is to hit them where it hurts... in the pocket book. As long as we pad the pockets of the big companies they have no reason to complain to the Government so we have to stop buying gas from these big companies until they realise it is up to them to stand up for their customers. After all is the customer not always right?
Date: December 17, 1999
Name: Dave Willis
Comments:
The article in December's issue was certainly an eye opener. All these years, I've been casting "bricks" in the wrong direction; I thought it was the large Petroleum Companies that were "ripping us off".
A few corrections to your statistics though are in order. Since the article was written, the prices in the Niagara penninsula are sitting at 64.9c for "regular gas", self serve and as high as 68.9 for "regular" full serve. That's a whopping increase of 10.5c (19.3%) and 14.5c (26.7%) from your stats.
Starting this past "Fall" when the last increases took place. I've been purchasing all my gasoline in the USA, the exchange and the bridge toll still make the trip worthwhile - savings between $5 and $8 CDN a fill-up. I realize that I'm supporting a foreign economy, but in my books -fair is fair as far as "gougeing" goes.
It's about time that the "Governments" start putting much needed funds back into our roads systems, that are inadequate for todays and tomorrows volumes and in a lot of cases in sad need of repairs.
You struck a nerve as I'm a charter member of the "silent majority". Thanks for the "wake-up"
Date: December 16, 1999
Name: Lynn M. Clark
Comments:
Since the cost of gasoline has risen in Ontario since your publication, and Southwestern Ontario now pays approx. 63 cents per litre, I believe the governments should absolutely reduce the taxes they collect. You mentioned in the Toronto area when gasoline was 54.4 the government was collecting 28.3 cents, or 53%. I believe that 40% per litre is sufficient, especially if they are not using all of the money to repair roads. The governments my think that is unreasonable but consumers cannot afford the higher cost of gasoline and when there were rumors of it going even higher than 63-65 cents, I thought to myself, well we will really have to cut back. If people can't afford to travel, then where is the economy going. We can't all walk to the store, can we?
Date: December 15, 1999
Name: Charles Oldham
Comments:
I think Gasoline Prices are really hard on people with fixed incomes, and living in places with no public transportation
Politicians need to think. and to revue Gasoline taxes, it wouldnt be so bad if they used that revenue to repair roads. But the money goes into general funds. Helps on their report card (HUGE SURPLUSES)
Date: December 13, 1999
Name: Name withheld
Comments:
Your artical was refreshing to read,as an independent small retailer,I wolud like to add a little more clarity to your artical. The petroleum industry opted to temperature correct all petroleum products just a few years ago. The government only aproved this measure, without reasearch. Now when we get a fuel delivery our standard tank dips never find there way to become equal. We are constantly short changed. We had to spend $$$ to compensate our pumps to avoid losses.
The question remains to be seen. What does a 15deg, temp at the gulf of mexico have to do with Canada. This remember was just gov. approved.
I feel this was another strike at the consumer and small retailers. I firmly beleave that taxation should be less than what it costs to produce and dispence. As a small retailer I supply power to the pumps+taxes repairs +taxes insurance +taxes
labour +beniffits + taxes.
I only make a margine of .01cents to.05cents per litre. I pay all other costs out of those pennys.
I strongly feel that taxes should not differ from the retailer margin. In this case if the Governments need .28 + cents a litre and we do all the work and collecting then we surley deserve the same. Would you not think so, this is just one issue of Tax reform Canada needs just the tip of the iceberge.
Keep Digging into this and I can see that you will be gaged for spilling the beans. This issue is just another smoke screen to keep us amused get it. Gun control and they have gained control.
I once read a Quote for a former US President that said. A government that choses to disarm its people is a Tyrancy in Government.
Where are we headed now? dictators are elected.
L.C.
Date: December 12, 1999
Name: Carson Gibson
Comments:
As a resident of Labrador City for the past 30 plus years, I have seen the price of gas increase by almost 400% in the last 3 decades. During the middle East oil embargo in the early seventies, the price has dramatically increased to the present price at our local pumps of 82.9/litre. I have always accepted the price change as a valid increase in the crude cost. After reading your article I was surprised to discover that the total taxes paid on a litre of gasoline(Canada average) is a womping 110.3%. Why is the taxes on gasoline(Atlantic Provinces)different from any normal consumer product where the HST of 15% is applied? Idealy 15% is what I think is reasonable for the government to collect on gasoline.
Date: December 12, 1999
Name: Ken McLeod
Comments:
I think a fair amount would be to take half of what they are already taking. The GST should be taking care of all kinds of crap like this that is going on.What was the GST for anyways? Think the government is taking way to much in taxes and should start to think about getting rid of some of those taxes...
Date: December 12, 1999
Name: Wayne Cutforth
Comments:
I feel that a 10% Tax on fuel would be plenty of money to repair and construct new roads. The feul tax should not be used for any other purpose other than transportation.
The Federal government is completely out of touch with the citizens of this country espesially those of southern Alberta. to a brainless Liberal, Bears and Elk are far more importance than people and freight trains through the Rokies are far more important than a beautiful passenger train ride. People don't seem to matter especialy unborn children. Some day those responsable will pay the price of ignoring and going against GODS laws...
Date: December 12, 1999
Name: Jon Seary
Comments:
Why can't gasoline be sold as every other product - with the taxes listed outside of the total? Perhaps just printing an itemized list of the taxes on the receipt, not just the 7% GST portion.
This would be a good first step in reigning in the ever increasing price per liter.
These numbers revealed in the article explain why every government appointed group to study gas prices seems to never find a good reason for the high prices, either.
Thank you for an article I wanted to see for some time.
Date: December 11, 1999
Name: Name withheld
Comments:
Hidden taxes should be exposed. At least 25% should be taken off the price.
Date: December 10, 1999
Name: JAMIE HARMS
Comments:
I believe that gas taxes should be FURTHUR raised, with all of the revenue going to improving public transit. People will not stop wasting our natural resources recklessly without some sort of deterrent, such as a hefty tax. We need to improve rail and bus systems, removing deadly trucks and polluting cars from our beautiful lands roads.
Date: December 09, 1999
Name: Tom Baer
Comments:
I believe the fair and reponsible tax would be 25% of what the oil companies charge, for each the federal and provincial governments to charge, with 80 to 100% of the revenue going towards road renewal and developement. The other 20% collected going toward regulating/administration and other hidden government ways of spending our money.
Additionally any over budget gov't agency involved would hvae to make up the shortfall within the following year,(fiscally responsible) NOT grab the funds from other or more taxes.
I do believe that Both federal and provincial gov'ts should be responsible for the upkeep of most of our roads, if not all that the public travels on. I do not agree that municipalities should bear the burden without the revenue, nor the possible long term outlook of lawsuit from unkept roads, due to reduced upkeep.
The Federal and Provincial government take the taxes now, they should be responsible to keep all the publicly travelled roads.
Date: December 09, 1999
Name: Name withheld
Comments:
My wife and I discussed your article in the Dec. issue of Reader's Digest and we feel that 15 cents per litre of gas would be enough as there are still the hidden taxes and GST/PST. This money should be utilized for road repairs and new road construction. With the current Federal tax revenues it should be possible to give the general public a break . For years I have been overtaxed,that's why there is a surplus.
Date: December 09, 1999
Name: Reginald C. Hopkinson
Comments:
I realize that Canadian gasoline prices are considerably higher than are USA prices, so maybe I'm not allowed to comment. However, even though gasoline taxes may seem obscenely high, they do serve a purpose other than put money into government coffers. Most of us don't realize it, but there is a finite amount of oil available in the world. How long will it last? I don't know, but I do know that if a substitute for oil is not found that just about all transportation will come to a screeching halt at some time in the future. The only way that any real effort will be put into finding a substitute for oil is to make use of oil products so expensive that the consuming public will accept a substitute even if it has disadvantages over oil. I would rather see this cost in taxes than in oil company excess profits.
Date: December 08, 1999
Name: Mike Arnold
Comments:
The Goverment should not make more than their laws state any other company in Canada can make (in some provinces they are making close to 200% of the original cost) So a fair gas tax would be about 30%.
Date: December 07, 1999
Name: Kari Dennis
Comments:
As with my husband, I believe taxes should be at least half of what our Federal and Provincial Gov'ts levy now. We are being robbed so politicians can collect a hefty income for working only weeks per year. We work hard to bring home an income that's riddled with holes like Swiss-cheese because we're taxed over and over again, and if we stole like the government does, we'd be in jail. Because of these exuberant taxes, money goes only so far, and when things go bad at the homefront, we are the ones who are considered irresponsible!
Date: December 07, 1999
Name: Anthony Susin
Comments:
I am of the opinion that a reasonable amount of taxes collected by our government for gas should be have of what is taxed now: about 26%. That still leaves more than enough for road renewal, if statistics are accurate.
Date: December 07, 1999
Name: Harold Swaffield
Comments:
If the governments are using just the 5% of the overall tax bill to equate to road maintenance and creation, then charge us just the 5%. Another point not mentioned is that every vehicle on the road has to be licensed and every driver is as well. These prices are as well becomming exceedingly expensive. This money was to be used for the repair and maintenance of our highways and local streets. Is that money being tracked as well?
Date: December 07, 1999
Name: merle hansen
Comments:
A fair tax on gas?I believe that in this day and age gas is now a neccesity not a luxary,it use to be you didn`t thing about going for a nice drive on a Sunday afternoon but with the price of gas you think twice.Now back to the tax there should be one tax divided equally between the federal and provincal goverment set at 20% and you should be able to claim a certain portion on your taxes if you need your car to get back and forth to your job .
Date: December 07, 1999
Name: Jeff Nelson
Comments:
Sorry, I had to add another comment.
I agree fully with the article, and with several others who have responded that the government (federal and provincial) are gouging us terribly, and probably criminally at the gas pump. Canadians are great at recognizing that. But, what do we do about it? Our government, especially federal, is not really democratic (the illusion is there, but the reality...). How do we get them to be accountable for how much tax is charged, and how it is used? What now?
Date: December 07, 1999
Name: Jeff Nelson
Comments:
I believe that a 111% tax rate on any product is criminal, especially when the taxes are not being spent on the things (road maintenance) that they are supposedly being collected for. This increase in taxes is hurting consumers - companies will have to charge more to pay for fuel for their vehicles. Workers have to pay more for fuel to get to work. I live in a semi-rural area of Canada (as do a large percentage of Canadians), where public transport is not even an option, and I have to commute a great distance to work. This tax gouging is hurting me considerably, and is almost making it impossible to go to work. Does the government prefer if I stay home and collect welfare?
A 50% tax rate on fuel would be more reasonable, IF the taxes were used for road maintenance.
Date: December 07, 1999
Name: Margo Hannah
Comments:
I don't mind paying taxes; but I really feel that the amount of tax collected on gasoline should be directed to repairs and maintainance of our highways. If the current amount collected was directed in such a way we would have high grade highways in many locations.
The amount collected in tax, in Canada, is ridiculously high and often mismanaged.
Governments sometimes play with the tax payer to the detriment of the tax payer. An example is Alberta where the present government cancelled the only program that was paying its own way. (the liqour control board) It was significant to me that persons who were closely connected to government officials had renovated their premises to become liqour outlets before the general public knew this was being done. (as reported in Edmonton Journal, I believe) However, this ruse works well in Alberta where the attack and gouge government was voted in again. So, if we don't like the gas tax serves us right. We voted for them, didn't we? We don't riot, do we? How many of you joined the underground economy, the silent riot? Did you know that when you started to collect money that taxes are not paid on you became like the drug dealers, pimps, prostitutes, average politician and other parasitical scum that prey on our weaker members of society.
Pay up Canada, it serves you right.
Margo Hannah
Date: December 06, 1999
Name: Name withheld
Comments:
5.6% all taxes collected should be re-invested in transportation related issues. if our governments believe $250,000,000.00 is adequate to meet these demands then that is all they should collect.
Date: December 06, 1999
Name: Don Maxwell
Comments:
The article on pump prices in the December issue was interesting in that it gave us a comparison of the sources of the costs of gas. However, I suggest that the taxes, although large are probably stable throughout the year, if so, then to what can we attribute the many fluctuations (as much as + or - 5 cents per litre) which take place during the year and which are almost always the same at the same time across the whole town? Gas company manipulation for profit?
Date: December 06, 1999
Name: Garry Ezinga
Comments:
Perhaps if politicians did not get their travel subsidies, and bore more of the direct cost of transportation like the majority of Canadians, they would be more inclined to lower fuel taxes (but only because it would benefit them first).
Date: December 05, 1999
Name: Geoffrey Grew
Comments:
Both levels of government should reduce fuel taxes
by one half. the money saved by consumers would
likely be spent on more travel or invested.
Whatevever the result more money in circulation
means a more healthy economy. Canada does not posess good low cost transportation and few large
centers with good medical care. The result is more
use of personal transportation regardless of cost.
The condition of the transcanada highway suggests
that little of the fuel tax is being spent to maintain the highway system paticularly in Ontario so we might just as well have the money to spend ouselves.
Date: December 05, 1999
Name: Luis G Palacios
Comments:
It is ABSURD!!!
The maximum tax should be around ten percent flat tax. Where is the money going? Ottawa should be responsible enough and disclose exactly where the gas tax money is going.
Date: December 05, 1999
Name: Name withheld
Comments:
I think that a reasonable amount of tax would be 15%. It should be enough to fix up the roads, create new roads, and hopefully any other work.
Date: December 04, 1999
Name: Frank Keesh
Comments:
I really wouldn't mind paying the present rate of tax on gasoline, if I knew it was all going to be used to maintain roads. Somehow I always thought thats what the tax were there for. But then I still remember the reasons why Petro Canada was launched, it was supposed to keep gas prices fair and control gouging. What a joke!
If you've watched Market Place recently you might have seen the interview with the CEO of Esso's 2,500 service stations across the country. His big excuse for keeping gas prices the same is safety. He said " Canadians have been known to cross 3 lanes of busy traffic just to save .02 cents on a litre of gas. Give me a break! does this idiot really think that anyone is going to buy that line of reasoning. Whats the excuse for say Yorkton SK or any other smaller town that couldn't find 3 lanes of traffic in their town even if they added them all up.
No, we're not being gouged! we're just being screwed.
Date: December 03, 1999
Name: Bryan Veysey
Comments:
First I don't believe we should have tax on tax.
Gas in N.B. has the GST tax added to it after
the price on pumps which already has been taxed.
Second- tax should not be allowed to be more
than the actual cost of gas. At the most the
tax should not be more than 30%. If governments
used this wisely instead of spending it on
themselves we would have better roads and in
the winter time our roads would be plowed and
salted with fewer fender benders.(huge cost to
consumers)
Date: December 03, 1999
Name: Derek J.K. Rennie
Comments:
To whom it may concern
In the southern portion of Vancouver Island we have been suffering under high cost of gas since the spring of 1999. At this time (Dec.3) our gas costs 64.9c at any station. During the summer if we travelled up to say Qualicum we could find a gas station or two selling at around 52c a litre.
In the Vancouver area the prices have been driven down, very often to the mid 40c level, because of a company named Arco. There is no sign of Arco's entrance into the Victoria market. Over one year ago the past premier, Glen Clark, announced the formation of a committee to investigate the reasons bhind gas price fluctuations. Guess what!
There has never been a statement released by that committee!
The governments are taking far too much in taxes, there is no doubt, and who would mind so much if our roadway systems across Canada was in first class condition. We know that is not the case so one can only assume that the money is going straight into that wonderful "General Revenue" account.
Canada produces and sells gas internationally but is it too much to expect that Canadians should get a break in the price of a litre of their own product?
Derek Rennie
Date: December 03, 1999
Name: Jamie Nesbitt
Comments:
Since the closure of thousands of miles of railway branch lines in this country, our roads have taken a beating due to the necessary increase in truck traffic. Taxes collected at the pump should reflect the cost of a manageable annual program to bring our national and provincial roadways up to snuff plus the cost of administration--and nothing more. Ten cents a litre, including provincial and federal taxes, should do this nicely.
Date: December 03, 1999
Name: Name withheld
Comments:
I am upset as much as everyone else about raising gas prices. I think the taxes or price of gas should be raised in areas that have Provincial or Federal government subsidized public transit provided as an alternative means of transport.
Those areas with no public transit, of any type- thus forced to use personal transportation- should be "subsidized" at the pumps with a corresponding lowered rate.
Date: December 03, 1999
Name: Ted Daquano
Comments:
The total tax should not exceed 40% of the cost of the crude + refining + marketing. All of the tax should be relegated to the roads and highway infastructure. This should be mandated by law so that that governments could not reallocate the funds without the public knowing.
Date: December 02, 1999
Name: Maleesa Wulff
Comments:
It is infuriating to see gas prices go up and up, especially when 50% of it is taxes. Ridiculous! And I hear that they will be up to 82 cents a litre by the end of the year.
How can we afford to drive to work at these prices? Some of us have to drive great distances to get to work on an already tight budget which is getting tighter and tighter all the time. We can't just walk to work when the drive is 1/2 hr.
It is just a hassle trying to figure out where to cut down on our own budgets so the government can live in our luxury. Will the government allow us to perhaps ride horses to work? Or ride a snowmobile? Everything costs so much to live on nowadays,and we have to rely on everyone else for our survival.
Maybe this y2K change will be a good thing. Using fireplaces instead of relying on power or gas. Using horses instead of relying on someone else's gasoline. We need to put a halt on our fast forward society,slow down and rethink who is relying on whom.
If we were independant, the government couldn't rely on us as much and we wouldn't have to rely on everyone else either. What is the government going to do for you when you can't afford to buy gasoline anymore? Sure, we may get a tax break when tax time comes in April 1999. But how much? Is it worth it? Why should a housewife have to work just keep up with society??? Welcome to the 2000's.
Date: December 02, 1999
Name: Name withheld
Comments:
I believe a fair gas tax would be 25% of the total costs which the oil companies charge. Thus if the gasoline cost 25 cents, there would be 6.25 cents, meaning a pump cost of 31.25 per litre. Now compared to European gas prices, we really have nothing to complain about, but some of the governments there do funnel these taxes back into roads and infrastructure. We should make the issue as to how our Federal government basically gouges us, and delivers nothing as far as roads and highways are concerned. This is what the media should be focusing on.
Date: December 02, 1999
Name: Name withheld
Comments:
It is a fact of taxation policy that governments will tax goods or services for which there is an inelastic demand. (i.e. for which there is no easy substitute). Gasoline is one such product, and, surprise, surprise, it's being taxed, and quite heavily.
But one thing we tend to forget it that the automobile is already the single most heavily subsidized form of transportation in Canada.
Let the gas prices go up to $1 per litre. I only drive when it is absolutely necessary, and if we can't encourage others to do the same in the name of social and environmental responsibility, then governments will be well-advised to force that change.
Was Michael Valpy right in his quote: "Sticks, sticks! The enlightened state exists to beat us into being better selves." (in The Globe&Mail)
Date: December 02, 1999
Name: H.E. King
Comments:
When gasoline was subjected to GST, all hidden taxes should have been dropped, because the money all went into general revenues and was not spend on roads at all. Period.
Our infrastructure is way behind the times because of reckless political spending by all parties over the past two decades. Your previous article about the safety of our highways was good. Highway 401 in Ontario, the corridor between Detroit and Montreal, was built circa 1960. It still has long stretches with two lanes each way. The number of vehicles has at least trebled since then, and a huge increase in truck traffic has replaced rail traffic. The highway should be at least four to six lanes each way, with a separate lane/section for trucks. Lack of a road modernization program over the past two decades probably is a reason why economic development became concentrated in the Greater Toronto Area at the expense of other Ontario communities. Current taxes are excessive and put Canada at a competitive disadvantage. At the gas pumps, gas prices are already another 10c/litre higher than reported in your article. Who did the latest gouging? This latest increase hadn't happened in the USA when I was there four weeks ago.
Date: December 01, 1999
Name: Jim Stewart
Comments:
It's a shame that the government wilfullfy takes these Huge gains for the coffers until "Joe Citizen" blows the whistle. When will we have a government that continually challenges the balance at all tax levels to ensure fair treatment to Canadians. Governments stand proud at the stability of our economy and its low inflation rates; but let us not forget that increases for all that we purchase are inevitable at the current litre price . I thought they knew?
Date: December 01, 1999
Name: Tim Istvan
Comments:
Thank you for your most recent article on gas prices. I do however would like to know where you got your gas price figures for Calgary for 1999 averaging out at 50.4 cents per liter. We own two vehicles and we keep track of costs at every gas fill. Nowhere in Calgary was the price lower than 51.9 cents per liter and that was only for a short while. If anything, gas prices averaged 53.9 cents per liter.
Governments tend to be greedy by nature and tend to tax their citizens in any sneaky way they can. So it is with tax on gasoline. They should be prevented by some sort of legislation from taxing gasoline more than 50 per cent of ground-to-customer delivery costs, in this case no more than 13.35 cents per liter on top of the 26.7 cents it costs to get a liter of gas to the consumer. The government should also spend every penny it takes in from gasoline tax on road building and road repair, not using any of the tax money on any general programs. All general programs should be financed from various forms of income tax, personal and corporate.
Date: December 01, 1999
Name: D.E.Haney
Comments:
If only 5% of the federal gas tax and 60% of the provincial gas tax is used for road maintenance, where does the rest of it go? I doubt that this information would be forthcoming from our government.
Canadians pay far too high taxes, about 50% of our wages. This is off topic to your request for comments, but please consider doing an article on income taxes and give us a vague idea of where our taxes actually go (or does anybody really know?). Most of us resent our tax dollars being allotted for abortion, special interest groups, corporate subsidies, bureacracy, politicians' exhorbitant wages and pensions (not to mention their travel expenses, living allowances, etc). We even contribute to financing of weapons to other countries and loans to third world countries that can never repay. The government seems to have no accountability.
Our taxes are primarily used to pay the interest on our national debt (essentially disappearing into thin air) while the banks are recording record profits (CEO's "earn" million dollar salaries while the ordinary taxpayer struggles.) One has to wonder where it will all end. How exactly do government, banks, and big business inter-relate? How can loans be made and interest charged when reserves are so low. Is it all artificial, only recorded on paper or computer files as figures? Where is the real money? Our debt, it appears, is deliberately created.
The public is not without blame for our current demise. There is a price to pay for all the social programs and securities that we receive from the government. Most are doomed for failure; CPP is basically a pyramid scheme. If one does not wish to participate in these wasteful squanderings and sometimes immoral agendas, he must reduce his income to the tax-exempt level, which obviously is not enough to live on.
Re: Gas Tax .... good article, but the price on the west coast has ranged from .55 to .64 over the past year. I think the tax should be equivalent to the costs of road maintenance, and used for road maintenance as it was originally intended.
Keep up the good work.
Date: November 30, 1999
Name: Clarence Beaton
Comments:
The government should take the equal amount we as consumers pay for the gst, That would be fair.
Date: November 30, 1999
Name: Jian Pei
Comments:
53 percent of the gas price is in the form of taxes! That is crazy and unswallowable. It is well known that Canada needs more work opportunities. It should be the free market, instead of the officials in the government, to judge how to create more fruitful positions using the money from Canadians.
It is easy to understand that, with lower tax rate, the price goes down sharply. More autos runs more miles. That definitely brings more vitality to our society.
Date: November 30, 1999
Name: Judith Evans
Comments:
Posting gas-tax rates next to the pumps is certainly a reminder each time we gas up that we, the complacent canadian, have done and will do nothing about the fact that the government, provincial and federal, continually take more and give less to the regular taxpaying citizens of this country. When will it end? When we grow backbone enough to say ENOUGH!
Date: November 30, 1999
Name: Ron Cirotto
Comments:
An excellent and informative article.
Another example of all governments (all political stripes)fooling the taxpayer. Taxpayers have short attention spans and memories and thus the governments can fool Canadians by NOT BEING HONEST. Hidden taxes are just a different way of lying to Canadians! However to be balanced, .. we as Canadian taxpayers must stop asking all governments for womb to grave benefits.
Ron Cirotto
Burlington, Ontario.
Date: November 30, 1999
Name: Name withheld
Comments:
I feel we are being gouged totally gas prices should be about 40.litre and that i would say is a fair price. people have to go to work and it takes gas to get there when 1/3 of their pay would go on gas. it would leave a family in devastation, and we already have enough of that.
polititions don't care because their gas is paid for by us the taxpayers, so they just sit back and laugh at us. the oil company's are another pile of garbage they also gouge us. as these ceo's sit in their offices on the 50th floor not caring if the little guy the gas bar attendant takes the rap of customers complaining that its the gas attendants fault prices are high or even gas bar owners. let me assure you it is not the gbowners or attendants faults prices are so high so now we know where its coming from the government and those ceo's on the 50th floor of a skyscaper. so all in all i feel 40 cent a litre is fair and the roads should be fixed with whatever profits are made.
Date: November 29, 1999
Name: Ron Funk
Comments:
The Tax on gas was intended for the up keep of the
roads that is it NOT to keep Governments in the money
Date: November 29, 1999
Name: Penny Allen
Comments:
Thanks for setting the record straight on how the pump price for gasoline is dispersed. Many Canadians believe that gas is cheaper in Alberta through some "regional favortism", or because many oil and gas companies are headquartered here. Your chart shows that it's our provincial government taking a smaller bite out of the pie than other provinces. How about that marketing fee for B.C.? Minus 1.5%? We need some of that marketing style in Alberta.
Date: November 29, 1999
Name: Name withheld
Comments:
The price of fuel is autrocious. The responsibility falls with both the Federal and the Provincial governments, AND the oil companies.
Taxes on fuel are totally out of hand. Why is the federal tax so high when they are only returning 5% to road maintanence? Where is the 95% going? That is criminal.
Provincially, in Saskatchewan, we often pay more for fuel than people in Ontario. When you realize that Saskatchewan has oil wells and refineries within the provincial boundries this does not make much sense. Saskatchewan also has some of the worste highways in Canada due to lack of maintenance. We are obviously victims of gouging by the governments and the oil companies.
As for the oil companies - there is no real competition. All stations raise their prices the same amounts at the same time, and they almost never lower the prices. Try to think of any other industry that works like that. There may be independant retaillers in some parts of the country that help keep the price down but in Saskatchewan any "independants" are manipulated by the large companies through distribution restrictions. There is no competition.
Even with the exchange rate there are still many people travelling East or West, from one part of Canada, to another via the U.S.A. It just makes financial sense.
Date: November 29, 1999
Name: Patrick Harrington
Comments:
I think a 40% tax with at least 15%of it going to roads,also I beleive marine gas should be exempt, after all it is not being used on the road.
The gov.use to allow this.
The gov.should have to say were the rest of the tax is being spent.
Date: November 29, 1999
Name: Name withheld
Comments:
I don't know what date your prices are from, but I just paid 62.1 cents/l in Winnipeg on Nov. 28,1999. The cheapest gas in this area is 58.5 at only two rural locations north east of Winnipeg. Our highways are in deplorable condition. Only the highways important to "Winnipeg" get repaired. Perhaps rural Manitobans should get a gas tax rebait from the government for "services not rendered".
Date: November 29, 1999
Name: Sean Fancey
Comments:
A reasonable amount to pay for gas tax is enough
to maintain and improve our roadways. I personally felt shafted when the government of Newfoundland, in promising a tax reduction with the blended sales tax, tacked it onto gasoline. However, in the last quarter of 1998 when crude prices fell to their lowest point in 25 years, I did not see any reduction in my gas prices from the oil companies. In fact, in the past eight years where I live the prices always go up. Seems like we are getting it both ways. Something for Mr. Vrsnik to consider, both parties are equally guilty.
Date: November 29, 1999
Name: Mona & Rusty Wright
Comments:
We don't want to totally let the oil companies off the hook for jerking gas prices around
every year. The're no angels; only the lesser of the evils. Lets start off by posting the
taxes on every pump in the country.
We believe a total tax of 15 to 18% (split
evenly between the feds and the provincials) would be realistic in view of the present
condition of many of the roads in Canada. And BOTH the feds and the provincials must
commit to spending ALL of the fuel on re-building, replacing, and repairing our roads,
bridges, etc.
When you consider the condition of most of Canada's roads, highways,
and bridges, it will take at least twenty years to bring them up to scratch. Remember the
pride we felt and the acollades we got when the Trans-Canada Highway was opened? And the
secondary roads were secondary only to the Trans-Canada in those long lost days. We can do
it again.
Date: November 29, 1999
Name: Norman Shea
Comments:
In response to your piece in the Digest, about overpricing of gasoline I must say that I am thoroughly disgusted with the overpriced gasoline at the pumps.. If the government is responsible, and it surely looks like it, then it is our responsibilityto do something about it.. Governments are bleeding the ordinary working man and the retired folks to death with exorbitant taxes and then promise that if elected they will reduce the taxes.. Should we believe them??? But then who would we elect?? They all appear to be of the same mentality, the same greedy breed... I wish I knew the real answers to these questions, but to face the reality of it all, something has to be done.... Can you tell me what it might be????
Date: November 29, 1999
Name: Devon Bestard
Comments:
The government has forgotten the reason they introduced the gas tax. It was for maintaing the roads that the drivers were using. This is what the tax should be for and only enough to meet the budget requirements of maintaining and upgrading our highways and roads. No more, no less.
Date: November 29, 1999
Name: NIALK
Comments:
Parlementary systems are old hat and corrupt!
In the U.S. the have the amendments to the old original constitution.In Switzerland the government is run by referendum...the country is poor...the residents have the money.
Our politicians report back to canadians as if it was a joke... gazoline prices included. In other countries people would be in the streets by now...
we suffer of apathy and the politicians know it.
Price of gas crude cost + refining + marketing + 50% tax or 14.8+6.6+4.7= 26.1 Cts + 13.05 = 39.15 Cts.... let's be generous 40Cts a liter! Nialk
Date: November 28, 1999
Name: L. Raymond Quicke
Comments:
I find it sadly typical that a Parliamentary investigation into gasoline price gouging should overlook the most obvious, and largest, sector of that price fluctuation; namely TAXES!
I also am not surprised to learn that the "road taxes" which fuel consumers pay at the pump rarely get to the road improvement for which they were established.
Only as government could someone fix a charge for a service which they never deliver (or deliver inferior quality to that promised) and get away without any hint of censure.
On the matter of price of fuel in itself, another issue of note. Diesel fuel is a lower distillate by-product from the refining process which produces gasoline. What I wonder is why the diesel comsumer pays the same, or higher, prices for diesel #1 as is charged for unleaded gasoline when in reality the price should be 8 to 11 cents per litre lower.
By way of reference: I have driven diesel automobiles since 1985; am currently in the tourist industry (diesel buese) and see this price gap daily.
If more people opted for the economy (5.2 l/100 km) of a diesel car, we would lessen pollution drastically as a result of the lower fuel comsumption; we would save petroleum resources and of course lessen our tax load.
Date: November 28, 1999
Name: B Boucher
Comments:
Gas should be equalized with all provinces in Canada. I think the major gas companies in Canada are taking advantage of higher gas prices(crude oil) to take advantage of the John Q Public. If Tempo, Husky, Domo and other smaller companies can afford to offer gas in the 59.9 to 60.4 range why can't the biggies? For Petro Can, Esso,and Shell is 2 to 3 cents in the Winnipeg area too much. I'm loosing confidence in the "Biggies" soon I will switch to a smaller company like Tempo, or Domo. Thank God Manitoba has compatition, sorry these smaller companies don't go as far as the Eastern provinces,, maybe soon.
Date: November 28, 1999
Name: J.R.Wood
Comments:
As is seemingly always the case with the government, public money is being harvested under the guise of the public good, in this case road repair. Having been a truck driver in this vast land for ten years, it is more than apparent from broken springs, constant realignments, and damaged freight, that fuel tax money is not being put to its intended use.
Now, as an independant business man who depends daily on transportation from a rural location, I am frustrated, and angered by the increasing depth at which the goverment reaches into my dwindiling profit margin. If I am to add to the cost of my product the exrta costs in transportation, how is my rural business to survive the compitition of centralized city business? The answer quite simply is that it won't.
I believe that its time for an independant study to be done to evaluate the true cost of road repair and maintanence, and then the tax structure be based on that finding. If the taxes must remain the same, so be it. We, as users of the roads should pay for them, but not a penny more.
Date: November 28, 1999
Name: Bill Smith
Comments:
This article was no surprise. Canadians are much too complacent regarding taxation. We probably deserve everything we get. It appears that government agenda is to relieve us of all our money not just the exhorbitant amount taken in income tax. I think that a 15% combination of GST & PST would be more than adequate tax on gasoline, or anything else.
Date: November 27, 1999
Name: DANIEL HENNESSY
Comments:
The tax should be like any other product!
retired people can only combat hikes by staying home more often.
Date: November 27, 1999
Name: Bill Mann
Comments:
The federal goverment should eleminate either the GST or the federal exise tax, as the GST was supposed to replace the federal exise tax. The provincial goverments and federal goverment should be forced to put taxes collected into upgrading roads and bridges, as we are driving on 1950 roads,with 1990 vehicles.
Date: November 27, 1999
Name: John Miller
Comments:
With the price of crude being about the same as it was in the 70's we are being gouged to death and too stupid to do anything.
If everyone refused to by gasoline at perto can stations unless their prices was $0.40 a litre it would not be very long before the prices dropped to the $0.40 a liter. It does no good to just pick a day and not buy gasoline, becaues we need it and will get it the day before or the next day but by centering out petro can we can force them to lowere the price or close up. It would take everyone to do it and stick to their guns until the price was at the set amount and if it went up to stop buying again. Your book has the power to help get the message out to the people and that is something the average person cannot do. We do not have a loud enough voice to get the attention of others to help us, but you at the digest do. The same with the auto clubs, where are they when the members need more than a trip or a tow truck, we need their guidance to fight the foe.
Date: November 26, 1999
Name: ed bates
Comments:
I beleive that we as canadians must somehow make our government account for the taxes. i feel that the tax should not be more than 12% and all sould be spent on roads.
Date: November 26, 1999
Name: John van Rietschote,
Comments:
Hi! Read the article by Vivtor Vrsnik and I must say that I'm not surprised, as a matter of fact I knew it all along but who to complain to ? The government? They just laugh at you and me. During my trip last year to Holland I paid aprox. $2.--
per liter there.The dutch are upset also but are in the same boat. We are constantly being snowed by those in government and they don't have to worry because if you come too close to them they call the R.C.M.P. A revolution, anyone?
Date: November 26, 1999
Name: J.Housego
Comments:
The article was very informative but did not address the responsibility for the almost universal increase in gas prices just before weekends, particularly before a holiday weekend, and the drop back early the following week. As far as taxes are concerned, if you don't like to pay them on gas, where would you like to raise the money from?
Date: November 26, 1999
Name: Larry O\'Grady
Comments:
Very informative article. Itis said the best defence is a great offence ... the Federal Liberals are masters at this game and have done well, yet again, at hiding the truth from those who's interests they have been elected to represent.
In this environment of "users pay" for services, taxes on gasoline to support the development and continued maintenance of the countries road infrastructure would be arguably justified. When the Federal Liberals return only 5% and the Provinces only 60% - a extremely small portion of this "user pay" tax - to support roadworks, this is not only irresponsible but criminal. We elect these officials trusting they have the moral standards to represent the citizens of Canada and conduct government business in the best interest of tax payers. If tax dollars raised through fuel sales is not reinvested at 100%, then it is our governments representatives responsibility to reduce "user pay" taxes to the level at which current investments stand.
We need to pressure our government officials on this issue. I will lead by example and contact my local MP and MPP. I hope others will do the same.
Date: November 26, 1999
Name: Len Shier
Comments:
The correct amount of tax to collect would be not one penny more than is put directly back into roads. I'd like to see the amount of tax (federal and provincial separately) posted on every pump -- hopefully then people would become educated and act accordingly at election time.
Somewhere, somehow, the unbridled greed has to stop!
Date: November 26, 1999
Name: Margaret Puttick
Comments:
Interesting article. Not much that I didn't already suspect. Now I'd like to see the same information on tabacco products. It's time that our governments accept some of the responsibility themselves. I'm tired of hearing that the taxes are to cover related healthcare costs. Doesn't that mean that the government admits that they are a health risk and yet still allows them to be sold? It seems that the only way a dangerous product can be sold legally is to let the government take a share. eg. tobacco products and liquor.
Date: November 26, 1999
Name: David E.Tanner
Comments:
I thank you kindly for the most informative article about the pricing of gasoline in Canada.
I run a limousine service with eight vehicles. As you may imagine, gasoline is one of my higher costs. This factor in our expenses is also directly related to the number of trips logged and their lengths.
Some of our regular trips (eg to Toronto International Airport - approx 100 km each way) were costed out when gasoline pump price was $.495/litre, whereas the current price is $.658 for an approximate 32.9% increase. Even with our fleet discount, the price is highly volatile and can fluctuate as much a $.05 in a few hours. In some cases we have had to drop rates just to compete with other services in our area. If we raised our prices by more than 10%, competition and the market place would put us out of the running for many types of assignments.
As a producer of much of the world's petroleum products, Canada and its provinces should be able to provide products to the citizens at a fairly consistent price without the current ridiculous escalation and fluctuation of prices. I can see how distance from source can affect the price, but Regina is next door to Alberta and customers there pay one of the highest prices in Canada, according to your survey chart.
There are no longer the independent suppliers which existed a few years back. These companies generally tried to keep prices within reason, but have, I suspect, been forced out of business, at least in southern Ontario, where we operate.
Again, I appreciate Reader's Digest staff for presenting the facts on so many issues which affect Canadians.
Sincerely,
David E.Tanner, M.Ed.
Dream Time Limousine
Cambridge Ontario
Date: November 25, 1999
Name: Robert McNally
Comments:
The Readers Digest article is already dated and misleading (unintentionally). Averaging prices for the year is misleading. They start low but at the previous years high. They traditionally increase around June, tourist season, then stabilize at an annual peak by the end of August. Winnipegs price is now 60.4 not 55.1. At my tourist lodge I sell gas to fishermen. My cost per litre increased 7.5 cents per litre between June and August. As an independent dealer I could only pass on a 2.5 cent increase through my pumps in order to stay competative with the major oil companies. The oil companies are a monopoly. They control the pricing with ready support from our governments and the consumer has no options, no alternatives, no alternative fuel sources. Taxes are not only triple what they should reasonably be but also higher than as reported in the Digest. As a dealer I pay the GST on my bulk purchase and by law GST must be included in my pump price. The government collects GST from the oil companies and the dealer. Sounds like the consumer is paying close to 16% GST on the gas when it finally goes through the motor. One final comment. In our small Northwestern Ontario community over one million litres of gasoline is used by fishermen and recreational boaters during the summer. Why do they have to pay road tax on that fuel. Why can't coloured gas be used as in other off road utility? The bottom line. All people, vehicle owners or not, rely on mechanized transportation powered by fuel. There are no options. Without viable options, 53+% taxes is not only unfair, it is imoral.
Date: November 25, 1999
Name: Catherine Petracek
Comments:
I live 2 hours east of Winnipeg, Manitoba, and the
gas prices in this town of Kenora,which is located on the TransCanada Highway, would scare you. We pay 70.9c/ltre for gas here, so I think that Winnipeg people have nothing to complain about.
I am unsure as to a reasonable amount for the government to collect on gasoline, but do feel that the taxes are too high now.
Thank you for this opportunity to express my opinion on gas gouging.
Date: November 25, 1999
Name: Vic Hinse
Comments:
The fact that the federal government spends only 5% of the fuel tax revenue on what the tax was orginally instituted for should be of no surprise. They have done the same with employment insurance,the GST and numerous surtaxs. We have no one to blame but ourselves,in recent elections the Liberals were given no reason whatsoever to change their deceitful ways.
Date: November 25, 1999
Name: Jeff Gaskell
Comments:
True the government is gouging us, though it wouldn't be so bad if the money actually made it into the budget for roads. The article lifts all blame from the oil companies and misses a real common problem. With no changes in the price of crude or taxes, the price at the pump bounces up, usually right before a summer long weekend. It may not be possible to prove price fixing, but all the stations increase the price at the same time.
Date: November 24, 1999
Name: Wayne Beneteau
Comments:
The government should get about 5 cents per litre.
We are the most over taxed country in the supposed
free world.
We work all week and give about one third of our
pay cheque to the government. Then we pay taxes on everthing that we purchase.
As far as I am concerned if you work, the taxes that the government takes from you before you get your cheque is the only tax you should have to pay!
Date: November 24, 1999
Name: Name withheld
Comments:
I heard on the news last night a sound-bite from a merchant who said that there is no market for upscale items/merchants in Canada because there aren't enough wealthy Canadians. Gee, I wonder where all that potential wealth is ending up?!?
Taxes are choking our economy and driving the best and brightest elsewhere. This is especially true in Quebec where we have spectacularly high taxes and a political system bend on buying votes with phony jobs ("Job Creation"!) paid for with taxes, taxes, and more taxes.
Oil companies greedy? Sure, all companies are greedy - it's the name of the game in business! It's normal. Governments making FAR more off of each business transaction than the actual businesses is NOT normal.
So why don't we do anything? The same reason we choose to stay: Canadians are too nice, which makes for a nice place to live, but this also allows the government to walk all over us.
NO MORE HIDDEN TAXES: we already pay OVER 15% GST/PST, plus fees all over the place just for the right to drive our over-taxed cars. Every extra penny of tax collected at the pump should be made to go to the roads, this way maybe we'll have roads that don't destroy my car here in Quebec, and bridges that don't fall down while we're driving on them.
Date: November 23, 1999
Name: Dr. Don Hunt
Comments:
I don't believe that most Canadians know that they are paying GST on those federal and provincial gasoline taxes. When the Conservatives brought in the GST, they said that there would be no double taxation. There would be no GST on other taxes. People just don't realize that they are paying GST on the tax as it is hidden. I think that the article could have touched on this problem also.
As to what is a reasonable amount of tax, I think that 10% is reasonable if it is used to rebuild or road system. 53% should be illegal.
Date: November 23, 1999
Name: Name withheld
Comments:
I live in Manitoba, and gasoline is 12 cents a litre more expensive than it was five years ago. Well, government fuel taxes haven't gone up in that time, so whose pocket is the extra 12 cents going into? Why don't the oil companies just admit their greed?
Date: November 23, 1999
Name: Kerry Scrivens
Comments:
What struck me about the article right away was the fact that we all realize that gas taxes are a major factor in the price of a litre of gas, but we always go after the oil companies. As the article brings to light, gov't tend to conveniently leave a tax study out of the gasoline price inquires they have done. I doubt there will be any investigation done in the current study as to where the gas tax dollars are going, and how much tax is really necessary to support the programs they were intended for.
To answer the discussion question, I think an average of the combined PST and GST nationwide, or no more than 15% PST/GST that Ontarions get whacked with, is just about the limit. Based on the national average established, gas should be in the 31 cent per litre range.
Let's face it, we need a full explanation of where the average 29 cents per litre we're paying is going, especially since gas is expected to continue rising in price. So far, the gov't has been able to ignore their responsibilty and accountability in the high price of gasoline, but consumers need to be informed to change their focus.
(That aside, oil companies need to stop jerking their prices around as often as they do; that put's the brunt of the attack on them. They are guilty of making it appear they are laughing at us, but I have the impression the gov't is laughing harder.)
Date: November 23, 1999
Name: George Neeson M.D.
Comments:
It is not clear in your article "Who's Really Picking Our Pockets at the Pump" (Dec Page 59) if the taxes, federal (business), provincial, and municipal paid by the oil companies have been factored in to the numbers in the spread sheet on page 60 - 61. If those taxes have not been included, and I doubt they are, this is a case of tax on tax on tax and is reprehensible.
George Neeson M.D. (A former medical director in an oil company 18 years ago - SYNCRUDE Canada)
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