Gas Tax to go for Highways

Worth A Look, Taxation, Frontier Centre

The NDP government introduced legislation Thursday that will mandate all money collected from on-road fuel tax be dedicated to the province’s highways. The move was promised in this year’s throne speech.

The gas tax is 15 cents per litre and the government collects about $300 million annually.
The government has in the past said it was putting all the fuel tax towards roads, but that was counting spending on rural roads and municipal infrastructure.

“What we’ve heard from people is that they want the gas tax to benefit the highways. That’s what this legislation actually provides,” said Finance Minister Andrew Thomson.

The Fuel Tax Accountability Act, if passed, will require the finance minister to report annually on fuel tax revenues and eligible spending.

The NDP wants the federal government to pass similar legislation.