In a bid to alleviate the financial strain on Ontario families and businesses amidst rising fuel costs, the Ontario government has unveiled a proposed extension of gasoline and fuel tax rate cuts until December 31, 2024. Premier Doug Ford announced the proposed legislation as part of the spring 2024 Budget, emphasizing the importance of keeping costs down for hardworking Ontarians.
The existing tax rate cuts, implemented from July 1, 2022, were instrumental in reducing the gasoline tax by 5.7 cents per litre and the diesel tax by 5.3 cents per litre. If passed, the extension would maintain these reduced rates at 9 cents per litre until the end of 2024, providing continued relief at the pumps.
While the federal government is raising its terrible carbon tax by 23 per cent, we’re cutting costs for taxpayers.
Today, I announced we will continue saving Ontario families hundreds of dollars by extending the gas tax cut until December.https://t.co/kHuB82VN8r pic.twitter.com/5bADZtUg5G
— Doug Ford (@fordnation) March 25, 2024
Premier Ford underscored the significance of this extension, particularly in light of the impending federal carbon tax hike scheduled for April 1. He urged the federal government to reconsider its plans, stating that the proposed increase would only exacerbate the financial burdens faced by Ontario families.
According to government estimates, the extension of tax rate cuts could save Ontario households an average of $320 over the two and a half years since the introduction of the initial cuts. Peter Bethlenfalvy, Minister of Finance, reiterated the government’s commitment to supporting Ontario workers amidst challenges posed by high inflation and interest rates.
The proposed extension forms part of a broader strategy by the Ontario government to provide financial relief to its residents. Initiatives such as eliminating the license plate renewal fee, freezing driver’s license and photo card fees, and launching the One Fare program have already contributed to easing financial burdens.
Additionally, the government has introduced legislation to empower Ontario voters with a veto over new provincial carbon tax initiatives and has terminated the Drive Clean Program, resulting in significant annual savings for taxpayers.
The proposed legislation now awaits debate and approval in the Ontario legislature. If passed, it would mark another significant step by the government to support Ontario families and businesses by keeping essential costs manageable in the face of economic challenges.
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