The province continues to put more money back in people’s pockets
TORONTO, Canada – To help Ontario families and businesses keep costs down, the Ontario government will be proposing legislation through its upcoming 2023 Fall economic statement that would, if passed, extend the gasoline and fuel tax rate cuts to June 30, 2024, saving households $260 on average since the tax cuts were first introduced.
“We know that every dollar helps, and this gas tax cut is another way we’re keeping costs down for Ontario families and businesses,” said premier Doug Ford. “As we continue to deal with lingering inflation, our government is continuing to provide people and businesses relief at the pumps for another six months.”
Since July 1, 2022, Ontario has lowered the gasoline tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre. The government is proposing to extend the rate cuts so the tax rate on gasoline and fuel (diesel) would continue to remain at 9 cents per litre until June 30, 2024.
“With the Bank of Canada’s high-interest rates, and as inflation continues to put pressure on household budgets across Ontario, our government is helping to keep costs down for the people of Ontario,” said minister of finance, Peter Bethlenfalvy. “On Thursday, I will provide an update on our plan that will continue with our government’s targeted, responsible approach so we have the flexibility needed to get through this economic uncertainty while laying a strong fiscal foundation for future generations.”
The proposed extension to the gasoline and fuel tax rate cuts builds on the government’s other measures to help put more money back into people’s pockets, including:
- Generating $1.1 billion per year in savings, for a total of $3.3 billion since March 2020, to Ontario vehicle owners by refunding licence plate renewal fees and stickers.
- Eliminating local transit fares on most local transit agencies in the Greater Golden Horseshoe for riders connecting to and from GO Transit, making it more affordable and convenient for families and workers to commute.
- Increasing the general minimum wage by 6.8 percent to $16.55 per hour as of October 1, 2023.
- Providing an estimated $115 million through the Ontario Seniors Care at Home Tax Credit this year to over 200,000 low-to-moderate-income seniors with eligible medical expenses.
The government continues to call on the federal government to, at the very least, pause increases to the carbon tax.
“The announcement to extend fuel tax relief for the trucking industry is a measure that all Ontarians should applaud. Virtually every item or product Ontarians have at home or at their places of business was moved by truck. Fuel is typically the second leading cost behind labour for the trucking industry. Keeping fuel costs down, helps fight inflation. The Ontario Trucking Association applauds the government of Ontario for its leadership and investment in helping fight inflation,” said Stephen Laskowski
president and CEO, Ontario Trucking Association.
- The government will provide an update on the plan for Building a Strong Ontario through the 2023 Fall Economic Statement, which will be released on November 2, 2023.
- The price paid at the pump is made up of the cost of crude oil, wholesale margins, retail margins, federal excise tax, the federal carbon tax, Ontario gasoline/fuel tax and HST.
- Beginning March 14, 2022, the province eliminated double fares across most local transit systems, making it easier and more convenient to take transit across the GTHA. By eliminating double fares across different transit systems, the government is saving commuters up to $1,600 a year.
“The best thing governments can do to help make life more affordable for taxpayers is to cut taxes. The Ontario government’s gas tax cut has saved the typical Ontario family hundreds of dollars over the past 18 months and this announcement will ensure that this critical relief continues into 2024. This gas tax cut extension is great news for Ontario taxpayers,” says Jay Goldberg, Ontario Director of Canadian Taxpayers Federation.