Ontario considers provincewide gas hike to pay for transit



Antonella Artuso, Queen's Park Bureau Chief

, Last Updated: 1:20 PM ET

TORONTO — Ontario drivers should be pumped for more cash to pay for transit infrastructure, a panel advising Premier Kathleen Wynne has recommended.

Making the Move: Choices and Consequences, released by the Anne Golden Transit Panel Thursday, has laid out two options to pay for new infrastructures projects through the Greater Toronto and Hamilton area.

Option A calls for a provincewide increase in gasoline taxes starting with 3-cent a litre in 2015-16, rising another cent a litre until drivers are paying 10 cents more a litre in taxes.

Fully implemented, motorists would be coughing up an extra $2.6 billion more in gas taxes a year.

On top of that, the province would still increase corporate income taxes by 0.5%.

Option B recommends a 5-cent-a-litre gas tax, also provincewide, a 0.5% hike in corporate taxes and a portion of the HST be directed to transit infrastructure.

“It’s a sin tax for drivers,” PC MPP Doug Holyday said, blasting the idea of a large increase in gas taxes.