More gas tax relief needed to make life more affordable: Report
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OTTAWA, ON: The Canadian Taxpayers Federation released its 27th annual Gas Tax Honesty Report to shine a light on all the hidden taxes that make fuelling up more expensive.
“Gas taxes still cost Ontarians too much money,” said Noah Jarvis, CTF Ontario Director. “The Carney and Ford governments deserve credit for providing relief, but politicians still have more work to do to cut taxes and make life more affordable.
“It’s time for politicians to end their unfair gas tax-on-tax and scrap all carbon taxes.”
Federal and provincial taxes cost Ontario drivers 34 cents per litre of gasoline, according to the CTF’s Gas Tax Honesty Report. That means that filling up a family minivan in Ontario costs more than $25 in taxes.
Both the Ontario and federal governments cut fuel taxes, which helps make life more affordable.
The Ontario government cut its fuel tax by 6.4 cents per litre of gasoline and has now made that change permanent. The average two-car Ontario family has saved more than $1,000 since the tax cut took effect on July 1, 2022.
The federal government cancelled its consumer carbon tax, which cost 17.6 cents per litre of gasoline.
The CTF is calling on both governments to provide further relief by ending tax-on-tax and scrapping all carbon taxes.
The Ontario and federal governments apply sales taxes after all the per-litre taxes are added. This is known as tax-on-tax.
The federal government implemented a hidden carbon tax through fuel regulations, which will cost up to 17 cents per litre of gas by 2030. And Prime Minister Mark Carney also promised to “improve and tighten” the industrial carbon tax on Canadian businesses which will increase the cost of fuel.
“Carney deserves credit for ending the consumer carbon tax, but his hidden carbon taxes will make life more expensive,” said Franco Terrazzano, CTF Federal Director. “Carbon taxes on businesses drive up fuel prices and make life more expensive for normal Canadians.
“Carney still owes Canadians a clear answer to this simple: how much will your industrial carbon tax cost?”