Ontario announces gas tax cut extension
The Ontario government has announced it will extend its gas and fuel tax rate cuts until June 30, 2024.
In effect since July 1, 2022, this is the second time Premier Doug Ford’s government has extended the cut.
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If passed, the legislation would continue to cut prices at the pump by 5.7 cents per litre.
“A lot of people are struggling right now…they’re struggling with the rising costs of gas and groceries,” Ford said at an Etobicoke gas station Tuesday morning.
“The fact is, people need a little bit of help.”
The Progressive Conservative government estimates the cut has saved the average household $260 per year since it was first introduced.
Diesel is also covered in the gas tax cut extension and would leave prices for that fuel at 5.3 cents per litre.
Without the tax cut, the tax rate on gas and diesel in Ontario is 14.7 cents, the government said.
In making the announcement, Ford again urged Ottawa to cut the “awful, awful” federal carbon tax, which he said is adding to the pain at the pumps.
“If the federal government eliminated the carbon tax off the pumps alone, that’s another 14 cents [saved],” Ford said.
Ontario premier Doug Ford holds a press conference regarding the gas tax at a gas station in Toronto on Tuesday, October 31, 2023. THE CANADIAN PRESS/Nathan Denette
Last week, Prime Minister Justin Trudeau announced a three-year pause on the tax on home heating oil, starting in Atlantic Canada, which Ford said is not equitable.
“Ninety-five per cent of people in Ontario do not heat their homes or business with oil. It’s completely unfair,” he said.
Monday’s announcement comes ahead of Ontario’s fall economic statement, which is set to be released on Thursday.
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