Ontario's Minister of Finance, Peter Bethlenfalvy announced that the government's Tax Relief at the Pumps Act has passed, which will allow gas and fuel taxes in Ontario to be cut starting July 1, 2022.
The gas tax will be cut by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months.
According to the government, the reason the cut has been delayed until the summer is because of the way gas and fuel taxes are paid to the province.
In Ontario, the consumer pays the tax at the pump, which offsets the amount the retailer pre-paid to its supplier.
The July start date is intended to provide the industry — including gas and fuel tax collectors, registered importers, wholesalers and retailers — the required time to adjust their systems and business processes.
"Our government recognizes that supply chain challenges and geopolitical conflicts are pushing up the price of everything, from gas to groceries," Bethlenfalvy said. "We have delivered on our government’s commitment to reduce provincial taxes and charges on gas by 10 cents per litre when this cut is combined with the 4.3 cent per litre reduction from Ontario’s 2018 legislation to eliminate the previous government’s cap and trade carbon tax."
