The province will spend $2.8 billion over five years on infrastructure upgrades and gas tax cuts in the Greater Toronto Area, but a lot of it will be for the gas tax.
The Ontario government is expected to announce a gas tax hike of 8.3 cents per litre on April 1, which would add $200 per litres to the gas bill.
But the province will use a combination of taxes and infrastructure investments to get there, including $100 million in infrastructure spending and a $5 million gas tax cut.
The province plans to spend $40 billion in infrastructure over the next decade, the Globe and Mail reported Tuesday.
Here are some of the things the province is spending on: • $400 million in gas taxes over the course of the next five years, to pay for infrastructure projects, including major infrastructure projects to upgrade transit, highways, bridges, and other roads.
• $40 million in the Ontario Power Generation and Distribution Commission’s gas tax rebate, which will allow consumers to save $100 a year.
• Another $4 million in new capital projects, such as roads, bridges and other infrastructure.
• An additional $1 billion in the province’s Infrastructure Canada fund to pay down its debt.
• And $2 billion in other measures to boost the economy and boost the environment, including an increase in minimum wage and a rebate for energy efficient vehicles.
“We are investing billions in infrastructure to grow the economy, and we are working hard to keep the price of gas down,” Premier Kathleen Wynne said in a news release.
“These are the kinds of investments that will help ensure our province remains competitive in the global marketplace.”
Gas tax increases and other spending plans are part of a broader plan by the province to bring in $2 trillion in spending by 2024.
The gas tax has been raised each year since 2003, but it hasn’t kept pace with the costs of other provincial taxes.
It is now up to the federal government to raise the gas-tax levy to pay off the debt.
But as the province faces growing debt, Wynne is trying to push through a plan to increase the gas taxes, including by up to 25 per cent.
The plan is expected before the end of the year.
The provincial Liberals are also expected to raise taxes on the wealthiest Ontario residents, including the top earners, to help pay for new infrastructure projects.