Ontario Plans to Extend Gas and Fuel Tax Cuts Until 2025

The Ontario government has announced plans to extend the current gas and fuel tax cuts until June 30, 2025. This extension, if approved, will maintain the tax rates at 9 cents per litre. The government claims that this measure will save Ontario households an average of $380 over three years since the initial introduction of the cuts. The tax cuts were first implemented on July 1, 2022, reducing the gasoline tax by 5.7 cents per litre and the diesel tax by 5.3 cents per litre. This decision is part of a broader strategy to address rising costs attributed to factors like the federal carbon tax, which is scheduled for another increase on April 1, 2025. The government has also highlighted other measures aimed at reducing costs for residents, such as eliminating the licence plate renewal fee and banning new road tolls on provincial highways. Further details on these initiatives are expected in the upcoming 2024 Ontario Economic Outlook and Fiscal Review, set to be released on October 30, 2024.