Ontario has announced its plan to extend its gas and fuel tax rate cuts through the end of the year, seeking to offset what it calls Ottawa’s “terrible” April 1 carbon tax hike.
The provincial tax cut, which went into effect in July 2022, reduced the gasoline tax by 5.7 cents per litre and the diesel fuel tax by 5.3 cents per litre. The cut was scheduled to expire on June 30. New legislation could now see it remain in place until Dec. 31
Premier Doug Ford said his government wants to keep the tax break in place until the end of 2024 to help Ontarians deal with the ongoing affordability crisis which he says has been exacerbated in part by the ongoing carbon tax increases.
“One week from today, on April 1, the federal government will be raising its terrible carbon tax by a staggering 23 percent,” Mr. Ford said at a March 25 press conference in Mississauga.
“This increase is going to raise the price at the pumps by an additional three cents per litre of gas. It’s going to hurt every single person in Ontario.”
He called on the federal Liberals to “immediately scrap next week’s tax hike,” saying that Ontarians going to the gas pumps will be “gouged.”
“Just think 17 — almost 17.5 — cents of every litre that goes into your car is going to the federal government,” Mr. Ford said. “It’s a terrible tax. Everyone knows it.”
The Ford government will introduce its proposed gas and fuel tax rate cut legislation through its 2024 spring budget, set to be released March 26. The rates will remain at nine cents per litre until Dec. 31 if the bill is passed in the legislature.
Call to Cancel Tax
Mr. Ford has been vocal in his opposition of the upcoming carbon tax for some time. He heavily criticized the Liberal policy in a recent press conference, accusing the federal government of being out of touch with the daily reality of Canadians.The carbon tax is set to increase $15 on April 1, rising from $65 to $80 per tonne. While Prime Minister Justin Trudeau has described the 23 percent pricing hike as a “logical way” to address the impacts of climate change, seven provincial premiers have opposed the increase publicly.
Mr. Trudeau recently took aim at opponents of the carbon tax, calling them “short-term thinker politicians” during a March 13 press conference in Calgary.
He said his government would not be swayed by the premiers’ arguments.
“My job is not to be popular... although it helps,” Mr. Trudeau said. “My job is to do the right things for Canada now and do the right things for Canadians a generation from now. And that’s what I’ve been focused on.”
The Epoch Times contacted the prime minister’s office for comment on Mr. Ford’s call to scrap the tax but did not immediately hear back.
Canada’s carbon tax was first levied by the Liberal government in 2019 and has been described by Ottawa as a necessity to achieve net-zero carbon emissions by 2050.
Carbon pricing kicked off at $20 per tonne in 2019 and rose to $50 per tonne in 2022. The price is set to rise $15 per tonne every year until it eventually reaches $170 per tonne in 2030.