In an effort to subvert rising costs at the gas pumps, the Ontario government is planning to cut the fuel and gas tax this summer.
The province intends to table legislation that, if passed, will 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.
The province said this will work out to around $815 in savings in 2022 for a southern Ontario family that owns two vehicles and drives regularly.
“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 news 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.”
The province said cutting the gas taxes as of July 1 will provide the industry with the required time to adjust its systems and business processes.
In the proposed legislation, the gas tax rate would be cut from 14.7 cents per litre to 9 cents per litre, while the fuel tax rate, which includes diesel, would be reduced from 14.3 cents per litre to 9 cents per litre.
The temporary tax reduction would remain in effect until December 31.
The province is also calling on the federal government to cut the carbon tax to further reduce costs for families and businesses.
