winnipegsun.com - Editorial - Give drivers a break
In 2004, the CTF says, the federal government collected $4.25 billion in direct federal gasoline taxes, an 18% increase over what was collected 10 years earlier.
There are a couple of reasons for the federal windfall.
Item 1: In 1995, the feds hiked their gas tax from 8.5c to 10c per litre to help fight the deficit. As we keep reminding the government, it has long since been slain.
Item 2: The GST is added on to the per-litre price including federal and provincial taxes -- a tax on a tax that marches steadily upward.