Welcome to "Feedback to the Feds" |
Fuel excise tax |
(Sample letter)
Date:
Dear Member of Parliament
Re: Transportation revenue surplus and aviation fuel excise tax
Prior to 1996, Canada’s air navigation services were operated by Transport Canada. Revenues were generated by an airline ticket tax for scheduled air carriers. General aviation paid $0.11 per litre excise tax on aviation gasoline.
In 1996, the government of Canada sold its air navigation services to Nav Canada and phased out the airline ticket tax. Nav Canada introduced user charges. General aviation continues to pay an $0.11 per litre fuel excise tax.
Prior to 1995, the Transport Canada owned and/or supported a large number of registered airports in Canada. Under the National Airports Policy, the federal government phased out its support for most airports.
Federal grants, subsidies, etc., for airports totalled only $45.6 million in 1998/99, of which $31 million went to the Airports Capital Assistance Program (ACAP), for which only regional airports with scheduled air carrier service are eligible. No funds went to local airports, and only $2.7 million went to non-NAS airports, presumably under terms of hand-over arrangements. That total of $45.6 million represents only 18% of the $266 million in federal airport lease fees alone. Airports across Canada are cutting services and adding fees to general aviation operators to replace lost revenue.
| Avg. 91/92 to 95/96 98/99 |
| Federal fuel tax revenues $3.4 billion $4.2 billion |
Federal Fuel Tax revenue has increased by 30% since 1991/92, and represents about 78% of all transportation revenues.
| Total credited revenues from transportation $0.3 billion |
| Plus non-credited revenues from transport 4.2 billion |
| Total (gross) expenditures (1.4 billion) |
| Net transportation profit (loss) to federal government $3.1 billion |
Revenues from transportation not only pay all current costs of the Department of Transport, they produce a surplus of some $3.1 billion, which is currently used for other programs (vote buying?). Revenues from transportation in Canada would have covered all costs, including the travel and transportation costs of the other federal departments, and still would have produced a profit of $2.3 billion last year.
In light of the government revenue surplus generated by transportation revenues, I respectfully request a reduction in the $0.11 per litre aviation gasoline excise tax and an allocation of more funds back into the transportation system including Canada’s secondary airports.
Yours truly,
cc:
Minister of Transport
Minister of Finance