Re: DML Gas Prices

From: Bob Tom (tigers@bserv.com)
Date: Mon Sep 05 2005 - 23:13:55 EDT


At 03:12 PM 9/5/05, Droo wrote:
>I don't know how you figure 50%.

I think that I wrote "around 50%". It's difficult to zero
in on an exact %age because one of the taxes is
a tax on top of other taxes.

In Ontario when regular gas was 89.7 cents a litre in June 2005
and if you had made a $50 purchase for 55.7 litres of self-serve,
reg. gas, this would be the breakdown in gov't taxes:

  14.7 cents per litre for provincial fuel tax = $8.19 *
  10 cents federal gov't excise tax = 5.57 **
   7 % GST (tax on a tax) = 3.27 ***

* This is a flat tax by the province of Ontario incl. in the total pump gas
price,
    much like your State gas tax.
** This a flat tax by the gov't of Canada incl. in the total pump gas price.
      It was put in in the 90s to help reduce the gov't of Canada's deficit.
      Since the gov't of Canada has been running surpluses for the last
      9 years straight, one wonders why it's still there.
*** This is a gov't of Canada tax put on the prov. tax, the excise tax
       and the price charged for the crude oil and profit, the refinery process
        and profit, gas stations for their operating costs and profits.

To give you a better idea of what is paid here, 1 US gallon is approx.
equal to 3.785 litres and 1 Imp. gallon (ours) is approx. 4.545 litres.
Current price per litre within the last week have risen up to about $1.36

The Canadian Taxpayers Association estimates that in Ontario,
43% of the pump gas price goes towards these 3 taxes.

The Canadian Gov't collected $ 5.1 and $ 4.8 billion in gasoline in 2003-04
and 2004-05 ­ and spent less than one-third that amount on road, air, rail
and water transportation: $ 1.4 and $ 1.6 billion respectively

>Never-the-less, in places like Europe they are paying in 100's of percent
>in tax. So yeah, 50% is alot lower than 300%. -Droo

I have two problems with this statement. I do not live in Europe as you
do not live in Ontario, Canada. Your math. (50% is less than 300%)
is correct but tell that to a pensioner on a fixed income (as I am) or
to a small business owner where profit margins are small.

Bob Tom Burlington, Ont., Canada
'97 Dakota Sport, 4x2, CC, Flame red, 5.2L, 44RE auto., 4.56SG



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