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RCCAO commends feds for additional gas tax funding for municipalities

RCCAO commends feds for additional gas tax funding for municipalities

VAUGHAN, ONT. — The Residential and Civil Construction Alliance of Ontario (RCCAO) is lauding the introduction of Bill C-25 by the federal government, which, if approved, would double the gas tax funding for municipalities to support municipal infrastructure priorities in the face of COVID-19. The association says it is urging all parties to come together and pass the legislation as soon as possible.

The proposed one-time investment of $2.2 billion through added gas tax funding for municipalities in 2020-21 will provide welcome relief for cities and the construction industry impacted by the pandemic and will help municipalities reduce the risk of infrastructure projects being delayed or cancelled, indicates an RCCAO release.

The association is also looking forward to further funding commitments from the federal government in the upcoming budget.

“We commend the federal government for the co-operative approach it has taken with provinces and municipalities since the beginning of the pandemic and the leadership it is taking on providing much-needed funding to municipalities in 2021,” said RCCAO executive director Nadia Todorova in a statement. “It is critical that the proposed funding be swiftly approved by the Parliament of Canada to prevent municipalities across Ontario from being forced to use money from their capital budgets to pay for higher operating expenses caused by the pandemic.”

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