Ontario To Cut Gas and Fuel Taxes For Additional Year
TORONTO — As part of its plan to help keep costs down for Ontario families and businesses, the government’s 2022 Fall Economic Statement will propose legislation that would, if passed, extend the current gas and fuel tax rate cuts to December 31, 2023.
“At a time when inflation has reached the highest levels in over four decades, we know families are feeling the pressure from rising prices on everything from gas to groceries,” said Premier Doug Ford. “To continue providing real relief, our government is proposing to extend the gas tax cut for another year to put more money back in peoples’ pockets where it belongs.”
The proposed extension of the gas and fuel tax rate cuts for an additional year would save Ontario households $195 on average between July 1, 2022, and December 31, 2023. This extension follows legislation passed this spring that cut the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months, from July 1, 2022 to December 31, 2022.
“By proposing to extend the gas and fuel tax rate cuts our government is helping Ontario families keep more money in their pockets during this time of economic uncertainty,” said Minister Bethlenfalvy. “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.”
The proposed extension to the gas and fuel tax rate cuts builds on the government’s other measures to help keep costs down for families and businesses, including:
- Cutting costs for millions of Ontario vehicle owners by refunding licence plate sticker renewal fees paid since March 2020, and eliminating licence plate renewal fees and plate stickers on a go-forward basis, saving vehicle owners $120 a year in southern Ontario and $60 a year in Northern Ontario for passenger and light commercial vehicles.
- Permanently removing tolls on Highways 412 and 418.
- Enhancing the Low-income Individuals and Families Tax (LIFT) Credit to provide claimants of the credit up to $875 in tax relief, as of 2022.
- Providing additional tax relief for workers, families and seniors through the Seniors’ Home Safety Tax Credit, the Ontario Jobs Training Tax Credit, the Ontario Childcare Access and Relief from Expenses (CARE) tax credit, and the new Ontario Seniors Care at Home Tax Credit.
- Delivering both near-term solutions and long-term commitments to build more homes faster to put home ownership within reach for all Ontario families, through the government’s housing supply action plans.
- This proposed extension would see the rate of tax on gasoline and fuel (diesel) remain at 9 cents per litre until December 31, 2023. This would save Ontario households $195 on average between July 1, 2022, and December 31, 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.
Ontario Cutting Gas and Fuel Taxes For Six Months To Provide Relief For Businesses and Families
Gas and fuel tax rate decrease