MPPs returning to Queen’s Park this week are being called on by the Toronto Automobile Dealers Association (TADA) to dismiss a report calling for a new carbon tax on the family car. In its 10th Annual Report, the Task Force on Competitiveness, Productivity and Economic Progress has recommended the Ontario Government consider a carbon tax.
Ontario Finance Minister Dwight Duncan: under pressure not to implement a carbon tax
If implemented, a carbon tax will be the fifth tax added to the price of gasoline in Ontario, says the TADA in a news release issued this week. Since the introduction of the Harmonized Sales Tax (HST), drivers have been paying an extra 8 per cent per litre in taxes to the Ontario government.
“MPPs should dismiss any calls for a new, punishing carbon tax on the family car. Drivers have been paying an extra 8 per cent in taxes on gasoline since the introduction of the HST and can’t afford to pay five separate taxes just to fill up their car. The HST on gasoline is a carbon tax — with a different name,” says Frank Notte, TADA’s Director of Government Relations.
“Almost one‐third of the price of gasoline goes straight to the government in taxes. A new carbon tax will be an unfair tax grab targeting the family car – which is a necessity for the vast majority of families to run their homes,” says Notte.
The Toronto Sun reported that Ontario’s Finance Minister Dwight Duncan has “quickly nixed” the task force’s recommendation regarding implementing a carbon tax.
Gas and tax facts:
* Gasoline was exempt from the 8 per cent provincial sales tax before the HST came into effect in July 2010;
* According to Natural Resources Canada, the average price of gasoline in Toronto from October 11 to November 1, 2011 was 122.9 cents per litre. The amount of taxes paid to the federal and provincial governments was 38.8 cents per litre or 32 per cent.
* Taxes paid on every litre of gasoline sold in Ontario includes:
1. 14.7 cent provincial Gasoline Tax;
2. 10 cent Federal Excise Tax;
3. 5 percent federal Goods and Services Tax (GST); and
4. 8 percent provincial Sales Tax
* The application of the HST on the full price of gasoline (that includes the 14.7 percent Gasoline
Tax and 10 cent Federal Excise Tax) means drivers are being double taxed. In other words, a tax
on tax.
