Auto taxes fuel government revenue not roads

The province of Saskatchewan is sitting on a $184.4-million surplus, which has been sustained by motorist-derived taxes and fees, but rather than pump the funds back into road and highway safety the money is fuelling the province’s general revenue, according to the Canadian Automobile Association (CAA).Provincial gas tax and vehicle fees collected in 2006 will reach $500 million in revenue and approximately $300 million could be put back into Saskatchewan’s roads and highways, according to CAA’s predictions. Of the $491 million projected revenue, CAA reports that $365.4 million will be related to fuel tax income and $125.7 million will be related to motor vehicle fees. Based on CAA’s report, road-related expenditures will account for 56% of the government’s projected fuel tax and fee revenue.However, because Saskatchewan does not have a dedicated taxation system, all gas taxes collected go directly to the province’s general revenues and not the roads.The CAA report compares Saskatchewan to Manitoba, which takes in $349.4 million annually in taxes and fees and spends $388.9 million on roads.