Today, the Residential and Civil Construction Alliance of Ontario (RCCAO) published an independent research study called “Increasing Provincial Fuel Taxes” by Harry Kitchen, Professor Emeritus from the Department of Economics at Trent University. The report, which was published today, raises some important points and adequately proves why increasing fuel taxes is the easiest and most beneficial tax to raise in order to balance Ontario’s 2017-18 provincial budget.

The study makes numerous recommendations on how to do go about raising fuel taxes, including planning for the introduction of some form of road pricing within major metropolitan areas and heavily populated regions. As the report clarifies, compared to fuel taxes or other revenue sources, road and parking pricing would effectively manage congestion, improve productivity, and generate funds for urban roads and public transit.

The tax increase could generate additional provincial revenues of around $14 billion over the next seven years – revenues which Professor Kitchen adds, should be dedicated to transportation improvements across Ontario. Earmarking the revenues, he further suggests, can prevent the political abuse of funds as it increases accountability and transparency. Most importantly, it boosts public support because people know where their taxes are being spent.

Although the increase in fuel taxes may cause some controversy, those against the suggestion can be ensured that the increase is most certainly not a long term solution. As the need for dedicated transit funding becomes crucial, it is evident as to why increasing fuel taxes may just be a critical step to unlocking the gridlock.

Read the full report at:

Featured Image


Write A Comment