Fuel taxes in Canada

Fuel taxes in Canada

The tax on fuel in Canada can vary greatly between locales. On average, about one-third of the total price of gas at the pump is tax. Excise taxes on gasoline and diesel are collected both federal and provincial governments, as well as by some select municipalities (Montreal, Vancouver, and Victoria); with combined excise taxes varying from 16.2 ¢/L in the Yukon to 30.5 ¢/L in Vancouver. As well, the federal government and some provincial governments (Newfoundland and Labrador, Nova Scotia, and Quebec) collect sales tax (GST and PST) on top of the retail price "and" the excise taxes. [cite news | first= | last= | coauthors= | title=Oil and Gas Prices, Taxes and Consumers | date=July 2006 | publisher=Department of Finance (Canada) | url =http://www.fin.gc.ca/toce/2006/gas_tax-e.html | work = | pages =6b) Application of the GST | accessdate = 2007-12-13 | language = ]

The Government of Canada collects about $5 billion per year in excise taxes on gasoline, diesel, and aviation fuel as well as approximately $1.6 billion per year from GST revenues on gasoline and diesel (net of input tax credits).

Collectively, the provincial governments collect approximately $8 billion per year from excise taxes on gasoline and diesel.

The federal taxes go into general coffers and help to fund a range of programs: 2 billion of the approx. 5 billion collected in Federal Excise tax goes into the now permanent annual Gas Tax Fund for municipal infrastructure. Provincial taxes usually go to fund road repair and construction with a portion (for example 2 cents/ litre of the 14.7 cents/litre collected in Ontario) also being directly downloaded to municipalities. [cite news | first= | last= | coauthors= Ministry of Transportation | title=Backgrounder - How municipalities benefit from provincial gas tax funding | date= | publisher=Govenrnment of Ontario, Canada | url =http://ogov.newswire.ca/ontario/GONE/2006/02/06/c4218.html?lmatch=〈=_e.html | work =Canada NewsWire | pages = | accessdate = 2007-09-07 | language = ]

Many Canadians cross into the United States to buy fuel due to lower fuel tax south of the border.

ee also

* Fuel taxes in the United States

References

External links

* [http://www.fin.gc.ca/toce/2006/gas_tax-e.html Oil and Gas Prices, Taxes and Consumers (Canada)]


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