If this gets approved, you’ll be paying 5-cents-a-litre more for gasoline.
A government appointed advisory panel is recommending the hike in the gas tax to help fund public transit expansion in the GTA and Hamilton.
Premier Kathleen Wynne won’t confirm the details until they are released later today, but tells CHML’s Bill Kelly Show, they need the opposition at Queen’s Park and municipal leaders to come on side.
Government sources confirm the report from the 13-member panel projects boosting the gas tax could raise about 800-million dollars a year and generate another $80-million through the HST.
Ontario currently imposes a 14.7-cent-per-litre levy on unleaded gasoline, which hasn’t changed in more than 20 years.
The report is also expected to recommend a dedicated trust fund so drivers know the extra tax they are paying can be used only for public transit improvements.
The panel is chaired by Ryerson University’s Anne Golden.
Government studies show people in the GTA and Hamilton area spend an average of 82 minutes commuting to and from work each day.
And if nothing is done, that time is expected to climg to 109 minutes a day by 2031.
Metrolinx says raising the HST by one percentage point would generate 1.3-billion dollars a year for the transit projects.
But the federal government has told the province that any changes in the sales tax must be done province-wide, not on a regional basis.
(The Canadian Press)