GOVERNMENT TO DEDICATE FUEL TAX TO PROVINCIAL HIGHWAYS

Released on November 9, 2006

The government of Saskatchewan is establishing legislation to provide that every dollar of the on-road fuel tax paid by motorists will be spent on Saskatchewan's highway system. Finance Minister Andrew Thomson introduced the Fuel Tax Accountability Act in the Legislature today.

"With this legislation, our Government is clearly demonstrating to motorists that the tax they pay at the pump is going toward Saskatchewan highways," Thomson said.

By creating The Fuel Tax Accountability Act, the Government is ensuring that on-road fuel tax revenue from gasoline and diesel fuel, less all rebates and refunds, will go toward funding the provincial transportation system. Fuel used primarily for off-road purposes, including liquid propane, locomotive and aircraft fuel will not be included. The fuel tax has remained unchanged since 1993 at a flat 15 cents per litre. Annually, fuel tax revenue exceeds $300 million.

"This guarantee establishes a new base for the highways budget and strengthens our ability to improve our highways," Thomson said. "I want to encourage the federal government that collects 10 cents a litre and a six per cent GST on gas to do the same."

According to The Fuel Tax Accountability Act, the Finance Minister must report annually on fuel tax revenues and eligible spending, beginning in 2007-08. The report will be included in Public Accounts each fiscal year. The Act also requires the government to table a plan to manage any excess fuel tax revenue not spent on the provincial transportation system.

"This legislation forms an important part of our ongoing commitment to accountability and transparency," Thomson said. "We want the people of Saskatchewan to be aware that the fuel tax revenue generated is going to improve our highways. A modern, functional transportation system is a critical part of building our future, fostering economic development, and creating opportunities for our young people, right here at home."

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For More Information, Contact:

Debbie Clark Finance Regina Phone: 306-787-8109 Email: dclark@finance.gov.sk.ca