Tax on Tax: NDP Carbon Tax Will Send Tens of Millions to Ottawa

Wildrose News Release bannerEDMONTON, AB (June 23, 2016): The NDP carbon tax is a tax on tax that will result in tens of millions of dollars being shipped to Ottawa with no benefit to Albertans, the Wildrose Official Opposition said today.

The federal sales tax, or the GST, charges 5 per cent on the total price every time an Albertan fills up at the pump. With gasoline and diesel fuel set to spike 6.73 and 8.03 cents per litre under the carbon tax, the amount of GST sent by Albertans to Ottawa will automatically increase.

For example, according to Statistics Canada, Albertans purchased 6.4 billion litres of gasoline in 2014. When the GST is applied to the full carbon tax increase, that means an additional $21 million going from Alberta to Ottawa just from the carbon tax increase on fuel.

Fuel Carbon Tax Rate as of Jan. 1 2018 Cost of 5% GST Total Number of Litres Sold in 2014 Estimate of GST sent to Ottawa
Gasoline $0.0673 $0.003365 6,401,100,000 $21,539,701.50
Diesel $0.0803 $0.004015 4,461,400,000 $17,912,521
Gasoline and diesel are only two of the 25 fuels that the carbon tax will apply to. Wildrose Leader Brian Jean called on Premier Rachel Notley to calculate the total amount of new tax dollars that will be sent to Ottawa through the new carbon tax.

“Over 44,000 full-time jobs were lost in Alberta last month, but the NDP government is doubling down on a new carbon tax that is just making things worse,” Wildrose Leader Brian Jean said. “This tax will not only take $1,000 per year out of the pocketbooks of working families, but will send more money to Ottawa instead of keeping it here in Alberta.”

Wildrose Shadow Finance Minister Derek Fildebrandt said this is just another reason why a growing majority of Albertans do not support this carbon tax.

“This is a tax on tax that will only send more money to Ottawa without significant return,” Fildebrandt said. “Taxing tax is wrong as a principle, but doing so and sending it to Ottawa without any strings attached is inexcusable.”