Where does money to fund the improvement of roads come from?
Taxes are usually responsible for the largest component of gasoline prices. On average, Canadian taxes represent 30 to 45 per cent of what you pay at the pumps. The federal government charges 10 cents a litre on gasoline this is the federal excise tax. The federal government gains $5 billion a year from the federal excise tax. Only 7 percent of that $5 billion is spent on roads and highways. This compares poorly with other countries around the world. For example, the United States invests 31% of a similar tax into road structure, Germany invests 38%, in Italy it is 45%, Australia invests 50%, Spain and France invest 65% and in Great Britain, 100% of similar tax revenues are invested into road structure.
