A man pumps gas in Irvine, Calif., on April 1, 2022. (John Fredricks/The Epoch Times)
At a Nov. 13 news conference in Etobicoke outside a Circle K gas station, Ontario Premier Doug Ford announced that the fall economic statement to be delivered tomorrow will propose legislation to extend the province’s tax cut on gas for another year, until Dec. 31, 2023.
Legislation passed in April had dropped the gas tax rate by 5.7 cents per litre and the fuel tax rate by 5.3 cents per litre for six months, from July 1 to Dec. 31, reducing both tax rates to 9 cents per litre.
Finance Minister Peter Bethlenfalvy is scheduled to table the fall economic statement in the legislature on Nov. 14 after the house reconvenes following the one-week break for Remembrance Day.
Bethlenfalvy announced on Sept. 23 that Ontario ended the last fiscal year with a $2.1 billion surplus, a sharp contrast from the 2021 budget’s forecast of a $33 billion deficit. Revenues, mostly coming from taxes, were 20 percent higher than expected due to inflation and nominal GDP growth. Meanwhile, Ontario has a net debt of $380 billion.
Ford said, “Everyone is concerned about the same thing, and that’s how expensive life is getting for them. From gas to groceries, prices are higher. And that’s putting real pressure on household budgets.”
Ford said the proposed one-year extension of the gas and fuel tax rate cut, which will see both of these rates capped at 9 cents per litre between July 1 this year and Dec. 31, 2023, will save Ontario families $195 annually on average.
The premier said licence plate renewal fees and plate stickers will also be eliminated going forward, saving the average vehicle owner from $60 annually in Northern Ontario to $120 annually in Southern Ontario.
Some of Ontario’s other measures to cut costs for residents include the permanent removal of toll charges on Highway 412 and Highway 418, improvements to a tax credit for low-income individuals and families, and various tax credits for seniors, job training, and child care.
