Despite recent price drop at provincial pumps, Saskatchewan motorists are shelling out nearly a quarter of their total fuel bill in taxes, according to a new report from the Canadian Taxpayers Federation (CTF), which is calling on both provincial and federal governments to ease the burden on drivers.
The CTF’s 27th annual Gas Tax Honesty Report highlights the multiple layers of taxation that Canadians face every time they fill up their tanks, with Prairie Director Gage Haubrich singling out Saskatchewan as an example of a province where drivers are being squeezed by overlapping tax policies.
“Saskatchewanians are paying three different taxes every time they fill up their vehicles,” said Haubrich. “Both Prime Minister Mark Carney and Premier Scott Moe need to cut their taxes on fuel that make life more expensive.”
According to the report, drivers in Saskatchewan pay approximately 31 cents per litre in combined federal and provincial taxes on gasoline. This includes:
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A 10-cent per litre federal excise tax
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A 15-cent per litre provincial fuel tax
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An additional 6.3 cents per litre in GST, which is applied on top of the pump price, including other taxes.
The CTF estimates that filling up a typical family minivan in the province results in about $23 in taxes, with taxes accounting for roughly 24% of the total pump price.
Haubrich pointed to recent tax cuts in other provinces as examples Saskatchewan could follow. Ontario, for instance, made its 6.4 cent per litre gas tax cut permanent, while Newfoundland and Labrador implemented an 8 cent per litre reduction in June 2022.
“Moe needs to take a look at what’s going on in other provinces and cut the gas tax,” said Haubrich. “Other provinces have been able to cut gas taxes to make life more affordable and the government of Saskatchewan needs to step up and do the same.”
With inflation continuing to affect household budgets and fuel remaining a necessity for many families across the province, the CTF says there’s a growing need for governments to revisit fuel taxation policies.
The annual Gas Tax Honesty Report is part of the CTF’s broader campaign for transparency and affordability in government taxation, especially on everyday essentials such as gasoline.