Montrealers pay highest gas tax in Canada (but you knew that already)

It's no secret Montrealers pay more for gas than most of the country. The main reason for that is every time you fill up you are paying seven per cent more tax per litre than the average Canadian.

The Canadian Taxpayers Federation celebrated its 20th Annual Gas Tax Honesty Day by releasing a breakdown of how much of your gas tank is helping fund the government.

"On average, 33 per cent of the price at the pump is gas taxes," said CTF Federal Director Aaron Wudrick. "Montreal has the highest gas taxes in the country."

According to the CTF 40 per cent of the cost of a litre of gas in Montreal is all tax. This works out to 55 cents per litre (with gas priced at $1.40). The federation averaged it out to you paying about $971 per year in taxes at the pump.


Montrealers/Quebecers also pay the highest (tied with Newfoundland) amount of tax-on-tax. Both levels of government calculate sales taxes after all the per-litre taxes are added, costing you about five cents per litre.

If that wasn't bad enough, in Montreal and the rest of Quebec, the price of gas pre-tax is among the lowest in the country. 

To help, the CTF is calling on the government to cut some of the taxes Canadians pay at the pump by 10 per cent.

"Canadians need relief, and eliminating the federal excise tax is an immediate way to help ease that burden" Wudrick said. 

However, even with a bit of relief on the federal tax front there are still a number of problems when it comes to gas prices in Quebec.

"The system of regional reductions of the provincial excise tax makes Quebec's gas tax the most complicated" the CTF wrote. "Quebec has different excise tax rates for peripheral regions, specific regions, regions bordering Ontario or New Brunswick, regions bordering the United States and aboriginal reserves." 

"Within each of those there are multiple rates based on the distances from borders or regions or if the region fits into more than one of the categories. This complexity means that there are 30 different categories for gas taxes. With so much complexity it's beyond the scope of this report to analyze all the tax rates in Quebec."