Fuel taxes in Canada
From Wikipedia, the free encyclopedia
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.[1]
| Government | Prov/terr excise tax (CAD¢/L) | Local excise + PST + Federal excise (10¢CAD/L) + GST = Total tax (CAD¢/L) | Total tax (USD¢/gal)[2] |
|---|---|---|---|
| Canada (Average) | 14.5 | 31.9 | 119.5 |
| Newfoundland and Labrador | 16.5 | 39.9 | 149.5 |
| Prince Edward Island | 20.9 | 36.8 | 137.9 |
| Nova Scotia | 15.5 | 38.4 | 143.8 |
| New Brunswick | 14.5 | 37.4 | 140.1 |
| Quebec | 15.2 | 38.0 | 142.4 |
| Ontario | 14.7 | 30.1 | 112.8 |
| Manitoba | 11.5 | 26.9 | 100.8 |
| Saskatchewan | 15.0 | 30.7 | 115.0 |
| Alberta | 9.0 | 24.2 | 90.7 |
| British Columbia | 14.5 | 33.0 | 123.6 |
| Yukon | 6.2 | 22.4 | 83.9 |
| Northwest Territories | 10.7 | 26.8 | 100.4 |
| Montreal, QC | 15.2 + 1.5 | 39.3 | 147.2 |
| Vancouver, BC | 14.5 + 6.0 | 36.3 | 136.0 |
| Victoria, BC | 14.5 + 2.5 | 33.0 | 123.6 |
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 C$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.[3]
Many Canadians cross into the United States to buy fuel due to lower fuel tax south of the line.
[edit] References
- ^ "Oil and Gas Prices, Taxes and Consumers", Department of Finance (Canada), July 2006, pp. 6b) Application of the GST. Retrieved on 2007-12-13.
- ^ Converted from CAD to USD with Google Calculator, 13 Dec 2007
- ^ "Backgrounder - How municipalities benefit from provincial gas tax funding", Canada NewsWire, Govenrnment of Ontario, Canada. Retrieved on 2007-09-07.
