May 18, 2022

The Queens County Citizen

Complete Canadian News World

MTQ is on the lookout for a way to replace gasoline tax revenue

MTQ is on the lookout for a way to replace gasoline tax revenue

With transportation electrification, the windfall of the fuel tax that Quebec allows the state to recover an average of $ 2 billion a year is set to dry up, so the government must switch to replace it.

Also read: $ 2 per liter of gasoline per year?

“We have less and less gasoline consumption, but because there are taxes on gasoline, there will be less and less tax entering the public treasury,” explained Gilles Payer, a spokesman for the Ministry of Transport (MTQ).

To avoid the blow, MTQ launched a work site on mobility financing in 2019, which has just been completed. More than 240 partners met and 58 briefs were submitted.

The ministry is looking for a recovery of at least $ 2 billion a year or equivalent to fuel tax revenue.

The situation is analyzed in many parts of the world, for example, in the United States, Norway, Sweden and Germany.

“We have selected 39 tools that are sometimes used already, but they are used differently,” an MTQ spokesperson explained.

MTQ does not wish to disclose what actions are prioritized and analyzed without unnecessarily alerting taxpayers. But here are some examples raised in official documents:

  • Electric vehicle charging tax
  • Toll
  • Cordon toll
  • Reserved lanes with tariff access
  • The cost of driving licenses and registrations is rising
  • Acquisition tax for luxury or electric vehicles

Sure, these actions will have an impact on the motorist portfolio.

“What’s the possibility of increasing license plates to $ 1?” That means if 6 million cars are registered in Quebec, it’s $ 6 million more to the government. The administrative aspect will be evaluated. Is it easy, is it efficient, is it fast? Mr. Payer said.

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However, the MTQ indicated that it was still in the process of evaluating the impact of various tools on households, citizens, businesses and municipalities, with the Ministry of Transport explaining its part. The cabinet on Wednesday evening added that the selection of applicable measures has not yet taken place.

The report will be submitted in 2023 and elected officials will be required to implement and implement certain recommendations.

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