Toronto, ON: The Canadian Taxpayers Federation is calling on Premier Doug Ford to make his government’s temporary 6.4 cent per litre gas tax cut permanent in its fall economic update.
“Ontario families have saved hundreds of dollars over the past year thanks to the Ford government’s temporary gas tax cut,” CTF Ontario Director Jay Goldberg said. “But that tax cut expires at the end of the year. Ontarians can’t afford more taxes at the pump, so Ford needs to take action and make sure his gas tax cut is here to stay.”
The CTF recently released its annual Gas Tax Honesty Report, showing that taxes make up 32 per cent of the pump price in Ontario, working out to about 52 cents per litre. That number will jump to 58 cents per litre if the Ford government allows its gas tax cut to expire at the end of the year.
“A two-car Ontario family filling up once a week has saved more than $450 since the Ford government introduced its provincial gas tax cut just over a year ago,” Goldberg said. “That could pay for two weeks of groceries for a family. As Ontarians face increasing living costs, the last thing taxpayers need is for the Ford government to allow its tax cut to expire.”
Ontarians currently pay five gas taxes. They pay a nine cent per litre provincial excise tax, a 10 cent federal excise tax, a 14 cent federal carbon tax, as well as federal and provincial sales taxes. The provincial excise tax will increase to 14.7 cents per litre on Dec. 31 if the Ford government fails to act.
The federal government and Ontario calculate sales taxes after the per-litre taxes are added. This tax-on-tax costs drivers in the province an extra 4.3 cents per litre of gasoline.
You can find the CTF’s 2023 Gas Tax Honesty Report here.