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What is the federal gasoline excise tax used for?

April 26, 2017Federal gasoline tax Used

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What is the federal gasoline excise tax used for?

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Taxes account for approximately 30 to 45 per cent (depending on the province you reside in) of what you pay at the pumps. The federal gasoline excise tax is 10 cents per litre. This translates into approximately $5 billion per year. A mere 7 per cent of those funds are reinvested into the maintenance of roads and highways. The remaining 93% of this revenue is not dedicated to any programs specific to the maintenance or sustainability of roads, highways or bridges.