Ontario government to introduce legislation to cut gas, fuel taxes

Ontario Premier Doug Ford's government is introducing legislation to cut gasoline and fuel taxes.

In a news release issued Monday morning, the province said if passed, the gas tax would be reduced by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for a period of six months beginning July 1.

"Ongoing supply chain challenges and geopolitical conflicts are pushing up the cost of living from gas to groceries," said Minister of Finance Peter Bethlenfalvy.

"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 reduction would build on the provincial government's 2018 announcement to reduce gas tax prices by 4.3 cents per litre. When combined with the savings from the Ford government's proposed legislation, the reduction in provincial taxes and charges on gas will total 10 cents per litre.

This would be the first time Ontario has reduced the gas tax in over 30 years.