Increase Provincial Transport Capital Spending to $4.174 Billion in 2007/2008

Toronto:The Canadian Taxpayers Federation (CTF) today launched its 9th Annual Gas Tax Honesty Campaign calling on Premier McGuinty to follow the lead of Saskatchewan and Manitoba by passing a Gas Tax Accountability Act. The yearly campaign kicks off the summer travel season for Canadian motorists. It is also the day of the year that Canadian motorists are reminded of the high tax component hidden in the price of gasoline. CTF Ontario Director Kevin Gaudet said, "The province generates over $4 billion in revenues from gas taxes and fees. This year they will only invest 47% of it back into roads, highways and bridges. The rest goes into general revenue. Instead, the province should reinvest 100% of the taxes and fees into roads, highways and bridges."

The CTF is also calling on the federal government to get rid of the 1.5 cent a litre deficit elimination tax, to reduce the fedal levy by 2 cents a litre and to stop taxing the tax where GST is charged on top of all the taxes. This would save motorists about 5 cents a litre. "Why are we paying a 1.5 cent a litre deficit reduction tax when there hasn't been a deficit in a decade. As well, we shouldn't be paying tax on tax", Gaudet said. Finally the CTF recommends 5 cents per litre should be transferred to municipalities for roadway development and maintenance. "Motorists would save 5 cents a litre and there would be greater spending on our infrastructure - a win-win all round", said Gaudet.

In 2003, Canadian municipalities spent $6.4 building and maintaining roads. More than eighty percent of all roads in Canada are municipal roads. The government should treat federal and provincial gasoline taxes as a user fee. "If this money was spent on roads, bridges, and highways perhaps taxpayers wouldn't be dealing with Mayors trying to raise taxes at the local level", Gaudet concluded.

Click here for the Gas Tax Honesty Campaign Report