Transport Ministry wants to use fuel tax for road maintenance

The Transport Ministry wants to use part of excise tax levied on fuel to fund road maintenance starting 2020, Transport Minister Uldis Augulis told Latvian Television January 31. 

The ministry proposal would see an increase in the part of fuel tax that goes to roads from 30-45% in 2020 to 70% in 2030. 

This would increase the funding three times by 2030, and it would "show the construction companies, designers and tender organizers that there's stability", said the minister.

As reported, state financing for national highways and roads was €286 million last year, 12.2% up from 2016. The amount includes €159 million allocated from the state budget and €127 million from European Union funds.

According to European Commission ratings, based on World Economic Forum data, Latvia has among the worst roads in Europe with only Romania and Malta ranked worse.

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