Cost Estimate of Tax Credit for Confederation Bridge Tolls

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Cost Estimate of Tax Credit for Confederation Bridge Tolls.pdf

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Confederation_Bridge_EN.xlsx

Summary

Based on monthly traffic data, local residents made an estimated 730,000 non-commercial trips over the Confederation Bridge in 2015.  This resulted in roughly $17 million in tolls paid to the private sector firm operating the bridge. 

A new personal, non-refundable income tax credit at the first bracket rate (that is, 15 per cent) would therefore result in foregone federal revenues of $2.5 million per year.  It is anticipated that this total would increase slowly, commensurate with toll prices and traffic. 

It is assumed that the frequency of trips across the bridge would not be influenced by the reduction in the after-tax cost of travel.