IN A MOVE to raise more tax
revenue to finance deficit spen-
ding, the federal government in-
creased the excise tax on gasoline
by more than four and one half
cents per gallon on Jan. 1.
According to the not-for-profit
Canadian Automobile Association,
the government is adding ‘‘fire 19
the fuel’? in an already unaccep-
table situation where taxes and
special charges more than double

the price of gasoline at the pump.

The 2.4 million member CAA
monitors gasoline prices
throughout Canada on a monthly
basis and releases a quarterly
report with figures provided by
Runzheimer Canada Inc., of
Toronto. Runzheimer is an inter-
national management consultant
firm specializing in transportation,
travel and living costs.

In its year-end national survey

and report, the CAA has identified
that after tumbling from a high of
56.8 cents per litre for unleaded
regular gas at a self-serve pump in
February °86 to a low of 44.9 cents
in September, gas prices have in-
creased in the last quarter of 1986
by .7 cents per litre or approx-
imately 3 cents per gallon,
Moreover, the January excise
tax increase will mean that con-
sumers are now paying over seven

21 - Wednesday, January 28, 1987 - North Shore News

cents per gallon more for gasoline
in January than they were in last
September,

Bob Erb, CAA executive vice-
president, commented that ‘‘in our
pre-budget discussions and com-
munications with government,
CAA has made it clear that CAA
members and motorists alike are
fed up with excessive gas taxes.’”

Since the Conservative gov-
ernment took office in September

1984, the federal sales tax on
gasoline has jumped from 9 to 12
per cent and the excise tax has in-
creased from 1.5 to 4.5 cents per
litre. Combined, these tax in-
creases represent about 15 cents
per gallon in the first half of their
political mandate.

In December, the Canadian
average price for regular unleaded
at a self-serve was 45.6 cents per
litre.

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