Toronto Automobile Dealers Association

Toronto Automobile Dealers Association

November 22, 2011 11:40 ET

Slam Brakes on Carbon Tax: TADA

TORONTO, ONTARIO--(Marketwire - Nov. 22, 2011) - MPPs returning to Queen's Park this week are being called on by the Toronto Automobile Dealers Association 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. If implemented, a carbon tax will be the fifth tax added to the price of gasoline in Ontario. Since the introduction of the Harmonized Sales Tax (HST), drivers have been paying an extra 8 percent per litre in taxes to the Ontario government.

Quotes

"MPPs should dismiss any calls for a new, punishing carbon tax on the family car. Drivers have been paying an extra 8 percent 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."

- Frank Notte, Director of Government Relations
Toronto Automobile Dealers Association

"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."

- Frank Notte, Director of Government Relations
Toronto Automobile Dealers Association

Facts

  • Gasoline was exempt from the 8 percent 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 percent.
  • 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.
  • Since 1908, the Toronto Automobile Dealers Association has been the voice of Greater Toronto's 340 new car dealers, representing every manufacturer's brand and franchise.

Contact Information

  • Toronto Automobile Dealers Association
    Frank Notte
    Director of Government Relations
    905-940-6232
    www.tada.ca