DCN ARCHIVES

May 24, 2006

Give gas tax directly to road construction

OTTAWA

The Canadian Taxpayers Federation is urging the federal government to return half of federal gasoline tax revenues directly to municipalities to spend on roadway development and maintenance.

The taxpayers federation says the average cost of a litre of gasoline paid by Canadian motorists was about 96 cents between May 2005 and April 2006, a 12 per cent jump in one year.

Taxes account for an average 35 per cent of the pump price. Current prices have jumped to a weekly average price of over $1 per litre in every region of the country.

The group says Ottawa spent 17 per cent, or $882 million of the $5.2 billion collected in federal gasoline and diesel taxes in 2005-06, on road and highway construction and maintenance.

CANADIAN PRESS

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