The Canadian Taxpayers Federation is sounding the alarm, as its 2024 Gas Tax Honesty Report highlights that Nova Scotians are paying 40% in taxes when purchasing fuel.
“Both Prime Minister Justin Trudeau and Premier Tim Houston need to scrap their taxes on fuel that are making life more expensive,” said Devin Drover, Atlantic director for the Canadian Taxpayers Federation.
Drover highlighted that Nova Scotians currently pay 67 cents in federal and provincial taxes per litre of gasoline. Gas taxes on a 64-litre fill-up amount to $44.80.
“A staggering 40% of the price Nova Scotians pay at the pump is taxation,” said Drover.
The Liberals have raised the price of carbon tax every year since 2019. The carbon tax reached $80 per tonne on Apr. 1, 2024. The tax will be raised by $15 per year until it reaches $170 per tonne in 2030.
The Gas Tax Honesty Report shows that the average Canadian will pay 47.9% in taxes and 52.1% for the gas itself on a 64-litre fill-up by 2030. Residents of Nova Scotia will pay 50.61% in taxes and 49.38% for the fuel itself.
Drover highlighted that other provinces have cut their gas taxes, saving residents money at the pump.
Manitobans pay the least to fill a 64-litre tank, as they are the only province without provincial fuel taxes. Their cost is $90.78, with Alberta following as the second-lowest at $98.04. Currently, Manitobans only pay 24.2% in taxes when refuelling their 64-litre vehicle.
By 2030, Manitobans will pay 44.7% in taxes when filling up, according to the report.
“Other provinces have been able to cut taxes to make life more affordable and the government of Nova Scotia needs to step up and do the same,” said Drover.
Removing carbon and fuel taxes has led to residents of some provinces saving money beyond just fuel.
Inflation in Saskatchewan and Manitoba has continued to rise at half the rate of the rest of the country following the two provinces cutting taxes on fuel.
While Canada’s overall inflation rose by 2.9% from May 2023 to May 2024, Manitoba’s inflation increased by only 1.3%, and Saskatchewan’s by 1.5%. No other province saw its consumer price index rise by less than 2.6%, according to Statistics Canada.
Conversely, Nova Scotia experienced the highest inflation in the country, with its CPI growing by 3.7% between May 2023 and May 2024. CPI measures price changes as seen by Canadian consumers.
The Bank of Canada initially estimated that eliminating the carbon tax would reduce inflation by 0.15 points. However, Governor Tiff Macklem later revised this figure to 0.6 percentage points. The revised estimate still faced criticism for not accounting for secondary or supply chain effects.
