… Our rural roads, highways and streets have never been in such a disgraceful state. We know that most of the fuel taxes in the past have gone directly into general revenue, at both levels of government.
The provincial government is spending about 40 percent of the tax collected on our provincial infrastructure while 60 percent of the fuel tax has gone directly into general revenue.
The federal government actually returns approximately 10 percent of the tax extracted from Saskatchewan with 90 percent going into general revenue.
What is urgently needed is a joint federal-provincial financial commitment. This commitment should clearly reflect the fuel tax taken from all sources, with a statement that would guarantee an annual percentage of the taxes collected go directly into the improvement and maintenance of the roads, highways, etc.
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Would it be asking too much to have the provincial government return 80 percent of the fuel tax to maintain and improve our infrastructure?
In other words, 12 cents per litre (80 percent) for maintenance and construction should be designated for the purpose of the tax. The other 20 percent (three cents per litre) could go to general revenue. The above percentages would double the past percentage of the provincial expenditures on our roads.
The federal fuel tax is approximately 15 cents per litre (same as provincial fuel tax).
The federal fuel tax has two components. The excise tax is 10 cents per litre and the remainder, up to five cents, is the federal GST tax. The federal excise tax is simply another name for the fuel tax. Would it be asking too much to have the federal government return 80 percent of the excise tax (eight cents per litre) to the province from which the tax was taken?
If the province committed 12 cents per litre and the federal government committed eight cents per litre, this 20 cents per litre would generate an unprecedented revenue that rightfully belongs to the people of this province and, in particular, to the motoring public and the transportation industry.
Our cities, towns, RMs and the Department of Highways could do long-range planning knowing that their annual budgets would be in direct proportion to the fuel taxes collected.
Some may argue that this is asking too much in return from the fuel taxes.
However, I have yet to meet a motorist or anyone in the transportation industry that would not agree with the premise of the above proposal. …
– Roy H. Bailey, M.P.,
Bengough, Sask.
