Ontario Government will Introduce Legislation to Reduce Gas Fuel Taxes

If passed, the gas tax will be reduced by 5.7 cents per liter, the fuel tax by 5.3 cents per liter.

The government of Ontario Premier Doug Ford will introduce a law that will temporarily reduce gasoline and fuel taxes.

In a news release issued this Monday morning, the province said that if passed, the gas tax would be reduced by 5.7 cents per liter and the fuel tax by 5.3 cents per liter for the six -month period starting July 1.

Ongoing supply chain challenges and geopolitical conflicts are driving the cost of living from gas to groceries, said Finance Minister Peter Bethlenfalvy.

Due to additional pressures, families and businesses need extra help to keep costs low. So our government will introduce a law that will give tax relief to gas stations and put the money back in people’s pockets.

The announcement comes as gas station prices have risen across Canada, and Ontario is preparing for an election campaign this spring.

In the 2018 provincial election, Premier Doug Ford promised to lower the price of gasoline by 10 cents per liter by reducing the provincial gas tax and scrapping Ontario’s cap-and-trade system.

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The government ended the cap and trade – a move made to lower the price by 4.3 cents – but it prompted the federal carbon tax backstop to begin, canceling those savings.

This will be the first time Ontario will reduce the gas tax in 30 years.

 

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Ontario Government will Introduce Legislation to Reduce Gas Fuel Taxes - /10

Summary

If passed, the gas tax will be reduced by 5.7 cents per liter, the fuel tax by 5.3 cents per liter.

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