Ontario Premier Doug Ford said on Sunday that the government’s 2022 Fall Economic Statement will propose legislation that extends current gas and fuel tax rate cuts to December 31, 2023.
The proposed extension follows legislation passed last spring that reduced gas tax by 5.7 cents per liter, and fuel tax by 5.3 cents per liter from July 1 to December 31, 2022. It would keep the tax rate on gas and fuel at 9 cents per liter.
According to the government, extending the gas and fuel tax cuts would save Ontario households $195 on average over the 18-month period, or about $10.83 per month from July 1, 2022 to December 31, 2023.
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“At a time when inflation has reached the highest levels in over four decades, we know families are feeling the pressure from rising prices on everything from gas to groceries,” Ford said, noting that the tax cut extension aims to provide “real relief” amid rising costs.
Finance Minister Peter Bethlenfalvy warned that Ontario “will continue to face economic challenges in the year ahead” along with the rest of the world, adding that the “government’s Fall Economic Statement will take a responsible approach to advance our plan to build while also being ready for any challenge that may come our way.”
Canada’s economy is likely to dip into a mild recession early next year, with private-sector economists predicting in September that 2023 GDP growth will be just a little above zero for a few quarters. Economic and financial conditions have continued to deteriorate since, and thus figures are expected to track even lower.
Information for this briefing was found via the Ontario Government, Reuters, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
