Ontario Government to Introduce Legislation to Reduce Gasoline and Motive Fuel Taxes

Ontario Premier Doug Ford’s government introduces legislation to temporarily reduce gasoline and motive fuel taxes.

In a news release Monday morning, the province said if passed, the gasoline tax would be reduced by 5.7 cents per liter and the fuel tax by 5.3 cents per liter for a period six months from July 1.

“Ongoing supply chain challenges and geopolitical conflicts are driving up the cost of living for gasoline at the grocery store,” Finance Minister Peter Bethlenfalvy said.

“With these added pressures, families and businesses need extra help to keep costs down. That is why our government is introducing legislation to provide tax relief at the pumps and put money back in people’s pockets.

The announcement comes as pump prices rise across Canada and Ontario prepares for a spring election campaign.

During the 2018 provincial election, Premier Doug Ford promised to cut gas prices by 10 cents per liter by reducing the provincial gas tax and removing the cap and trade system. Ontario.

The government ended cap and trade — a measure intended to cut prices by 4.3 cents — but that prompted the federal carbon tax backstop to kick in, reversing those savings.

This would be the first time Ontario has reduced the gas tax in over 30 years.