Canadian Taxpayers Federation Pushes For Reduction Of Carbon Tax And Fuel Taxes

The Canadian Taxpayers Federation is urging governments across Canada to eliminate carbon taxes and reduce fuel taxes to help lower gas prices for consumers.

The group argues that high taxes are a major contributor to rising costs at the pump, noting that in some cities, taxes can total as much as 65 cents per litre.

They also criticize the structure of fuel pricing, pointing out that Canadians often pay sales tax on top of existing fuel taxes—effectively a “tax on tax” that increases overall costs.

In addition to direct taxes, the federation highlights federal fuel regulations that require lower carbon content in fuels. Producers who fail to meet these standards must buy credits, costs that are passed on to drivers. These rules currently add up to about seven cents per litre, and could rise to 17 cents by 2030, according to the Parliamentary Budget Officer.

The group also argues that carbon pricing on industries—such as oil, gas, and manufacturing—ultimately leads to higher consumer prices, as businesses pass those costs along.

Overall, the federation is calling on politicians to scrap carbon taxes, cut fuel taxes, and eliminate layered taxation in order to make fuel more affordable for Canadians.

Canadian Taxpayers Federation Takes Legal Action Compelling Bank Of Canada Disclosure Of Executive Compensation

The Canadian Taxpayers Federation is taking legal action to force the Bank of Canada to disclose how much it pays its top executives.

The group filed a Federal Court challenge after the central bank refused to release records detailing compensation for governors and senior deputy governors between 2012 and 2023, including salaries, bonuses, and performance pay.

According to the federation, Canadians have a right to know how much public officials are earning, especially within a Crown corporation funded by taxpayers. They argue that access-to-information laws are meant to ensure transparency, and that withholding this information undermines public accountability.

The Bank of Canada declined the request, citing privacy protections under federal law. A complaint was filed with the Office of the Information Commissioner, which found some information may have been improperly withheld but largely sided with the government’s position.

In response, the federation—alongside transparency advocate Matthew Malone—is asking the court to order the release of the records, arguing that executive compensation in public institutions should not be kept secret.

The group also points out that similar information is publicly available in other jurisdictions, such as the United Kingdom, where central bank leadership pay is disclosed.

Canadians To Face More Tax Hikes In 2026

Canadians could see their overall tax burden rise in 2026, according to a new analysis from a national taxpayers’ advocacy group, despite the federal government’s plans for targeted tax cuts.

The Canadian Taxpayers Federation (CTF) says that although some income tax reductions are scheduled, increases to payroll deductions and other federal levies are likely to outweigh those savings for many families.

A key change is the planned reduction to the lowest federal personal income tax bracket. The government has promoted the cut as a measure to improve affordability for lower‑ and middle‑income earners. The CTF, however, argues that any benefit will be modest once other tax‑related cost increases are taken into account.

Payroll taxes are set to climb in 2026, with higher Canada Pension Plan (CPP) and Employment Insurance (EI) contributions. These mandatory deductions affect most workers and are split between employees and employers. According to the CTF, the combined increases could cost individual workers several hundred dollars over the year, reducing disposable income.

The report also points to the ongoing effects of carbon pricing. Although the consumer carbon tax was removed in 2025, the industrial carbon price remains and is scheduled to rise again in 2026. The CTF contends that businesses pass these costs on to consumers through higher prices for goods, services, and transportation, adding to inflationary pressures.

Another expected increase comes from federal alcohol excise taxes, which automatically adjust each year based on inflation. This means beer, wine, and spirits are set for another tax hike in April 2026, affecting both consumers and hospitality businesses.

CTF federal director Franco Terrazzano says the combined impact of these measures means Canadians should not anticipate meaningful tax relief next year. He argues that government revenues are growing more because of higher taxes and mandatory contributions than from economic expansion.

The federal government, meanwhile, defends its approach, highlighting targeted tax cuts and social programs aimed at affordability and economic stability. Officials also emphasize that CPP enhancements are designed to strengthen long‑term retirement security, framing payroll contributions as investments rather than traditional taxes.

Critics maintain that with many Canadians already facing high housing costs, rising food prices, and elevated interest rates, additional deductions and indirect taxes will further strain household budgets.

As 2026 nears, the CTF is urging the federal government to broaden tax relief and rein in spending growth, warning that without changes, Canadians will continue to feel the effects of an increasing overall tax load.