The Ontario government announced today that it is introducing legislation that would, if passed, cut the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months beginning July 1, 2022.
“Ongoing supply chain challenges and geopolitical conflicts are pushing up the cost of living from gas to groceries,” said Minister of Finance Peter Bethlenfalvy in a media release. “With these added pressures, families and businesses need extra help to keep costs low. That is why our government is bringing forward legislation to provide tax relief at the pumps and put money back into people’s pockets.”
Effective July 1 until December 31, 2022, the gas tax rate would be cut from 14.7 cents per litre to nine cents per litre, representing a cut of 5.7 cents per litre. The fuel tax rate, which includes diesel, would be reduced from 14.3 cents per litre to nine cents per litre, representing a cut of 5.3 cents per litre.
A July 1 implementation date would give manufacturers, wholesalers and retailers time to adjust their systems and business processes.
The Ontario government is also calling on the federal government to cut the carbon tax, which increased to 11.05 cents per litre on gasoline and 13.41 cents per litre on diesel on April 1, 2022.
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