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Friday, July 12, 2024
    HomeN2:CAConservatives in Canadian province of Ontario propose gas, fuel tax cuts

    Conservatives in Canadian province of Ontario propose gas, fuel tax cuts

    (Reuters) - The government of Ontario introduced legislation on Monday to reduce taxes on gas and fuel that, if passed, would come into effect after a June 2 election in Canada's most populous province.

    The legislation, if passed by the provincial legislature, would cut the tax rate on gas to 9 Canadian cents per litre from 14.7 cents per litre while the fuel tax would fall to 9 cents per litre from 14.3 cents per litre for six months from July 1.

    Opinion polls show Progressive Conservative Premier Doug Ford's government is likely to be re-elected.

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

    "That is why our government is bringing forward legislation to provide tax relief at the pumps and put money back into people's pockets," he added.

    The government said the July 1 date was drafted to provide the gas and fuel industry time to adjust systems and business processes.

    Russia, which produces about 10{5ad0cd663e4180c32b8049fbde12201ec3855e324a84c95f0595f875746ae8b3} of the world's oil, has been subjected to crippling sanctions by Western countries over its invasion of neighboring Ukraine, and fuel prices have soared globally during the war.

    Ahead of the provincial election, Ford's government has announced a host of measures that it says are aimed at reducing living costs for Ontario residents.

    In addition to removing tolls on some highways and eliminating vehicle license plate renewal fees, Ford has also announced an increase in the real estate speculation tax for foreign buyers to 20{5ad0cd663e4180c32b8049fbde12201ec3855e324a84c95f0595f875746ae8b3} from 15{5ad0cd663e4180c32b8049fbde12201ec3855e324a84c95f0595f875746ae8b3} and expanded it to the entire province.

    (Reporting by Ismail Shakil in Bengaluru; Editing by Paul Simao)




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