Ontario gas tax cut to be extended for another year
Ontario gas tax cut to be extended for another year
Ontario Premier Doug Ford announced he is set to extend the province’s gas tax cut for another year.
The Ontario government slashed prices at the pumps by 5.7 cents per litre in the summer, which was set to expire on Dec. 31.
“Tomorrow, we will introduce legislation to extend the gas tax cut for another year, delivering some needed relief for drivers and businesses for one more year,” Ford said at a Sunday news conference.
When the tax cut was introduced, Ford said he would consider extending it if inflation remains high. On July 1, gas prices dropped around 11 cents overnight in the Toronto-area, partially attributed to the tax cut coming into effect.
The legislation also cut the cost of fuel, which covers diesel, by 5.3 cents per litre.
“Extending the tax cut for an additional year will mean the average household will save $195. We know that every dollar helps,” Ford said.
His remarks come a day before the province is set to release its fall economic statement.
A report two weeks ago revealed Ontario is in good financial shape.
The province's Financial Accountability Office projects a $100-million surplus at the end of this fiscal year, and an $8.5-billion surplus in 2027-28.
Finance Minister Peter Bethlenfalvy announced in September that Ontario ended the last fiscal year with a $2.1-billion surplus, a far cry from the $33-billion deficit projected in the budget, thanks to inflation and a strong economy.
“Ontario, like the rest of the world, will continue to face economic challenges in the year ahead. This is why our government’s Fall Economic Statement will take a responsible approach to advance our plan to build while also being ready for any challenge that may come our way,” Bethlenfalvy said.
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