Key Takeaways:
- Faced with record-high gas prices, the Ford administration intends to introduce legislation that would reduce gasoline and fuel taxes for a limited time.
- In 2018, Premier Doug Ford promised that a tax cut and the elimination of the cap-and-trade system would result in a ten-cent-per-liter reduction in gas prices.
- Minister Todd Smith stated that the province would lower the gas tax only if the federal government reduced the GST first.
In the face of record-high gas prices, the Ford government plans to introduce legislation that would temporarily reduce gasoline and fuel taxes.
According to CP24, the legislation, which is expected to be introduced on Monday, will lower gas and fuel taxes by 5.7 cents per liter for six months starting July 1.
Premier Doug Ford promised in 2018 that a tax cut and the elimination of the cap-and-trade system would lower gas prices by ten cents per liter. Following his election, Ford repealed cap-and-trade, claiming that it reduced gas tax prices by 4.3 cents per liter.
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However, the federal government responded by imposing a carbon tax on the province, wiping out the savings.
The province’s rising gas prices have prompted some to call on Ford to keep his election promise of further lowering the gas tax and relief to motorists.
Following Russia’s invasion of Ukraine, the average cost of gas in Ontario has risen, approaching $2 per liter in March. Due to a rise in the federal carbon tax that took effect on April 1, motorists can expect another increase in gas prices.
Ford said last year that he would keep his promise to cut the gas tax by 5.7 cents per liter before the next budget, which was set to be announced on March 31, 2022. The budget was later pushed back to April 30, before the election campaign began.
However, the premier stated in February that he would not follow through on his campaign promise unless the federal government made a similar commitment and reduced gas prices.
His energy minister expressed similar sentiments when asked if Ontario would follow Alberta’s lead and stop collecting fuel taxes to lower gas prices. Minister Todd Smith stated that the province would only lower the gas tax if the federal government first lowered the GST.
Source: CTV news
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