REGINA, Sask. — Saskatchewan may impose a fuel tax increase on drivers to help fund the province’s municipalities.
The Saskatchewan Urban Municipalities Association (SUMA) is expected to vote on the proposal at its convention today.
The one-cent-per-litre fuel tax hike has already received broad support, but it now has to be voted on by about 1,100 SUMA delegates at the convention.
If approved, the fuel tax increase will generate about $21 million per year, SUMA predicts. About $15 million of that will be distributed to the province’s cities while $6 million will be given to rural and northern municipalities.
The province currently collects 15-cents-per-litre on fuel sold within the province, which generates about $310 million per year. The municipalities say they don’t see any of that money, however, which goes directly to the province.
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