1.03.06 - “[L]ower […] diesel taxes by 10.3 cents a litre, saving you every time you fill up your car or truck”
On April 4, 2022, the government proposed legislation that would amend the Gasoline Tax Act and Fuel Tax Act to temporarily cut the gasoline tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months beginning July 1, 2022. The Tax Relief at the Pumps Act received Royal Assent on April 14, 2022. Since the legislation is a temporary solution to reduce gas prices, the promise is considered partially kept.
“Effective July 1 to December 31, 2022, […] the fuel tax rate on clear diesel (including blended), clear kerosene and biodiesel will decrease from 14.3 cents per litre to 9.0 cents per litre.”
While the Ford government managed to remove the cap-and-trade system, resulting in a temporary decrease of 5 ¢/litre (see more here), doing so triggered the federal carbon tax backstop and negated those savings. Meanwhile, the provincial diesel tax has not changed since the beginning of the Ford government’s mandate. This promise is therefore broken.
“The federal government charges an excise tax at a flat rate of […] 4 cents per litre on diesel (in effect at that rate since 1987).” [Ed. Note: See Table: ‘Federal and Provincial Consumption Taxes on Petroleum Products’ under column “Diesel”].
“Ontario families and small businesses pay the federal carbon levy. Ontario challenged Ottawa’s authority to impose the carbon levy in court and lost and is now appealing to the Supreme Court of Canada. […] The province is also subject to the output-based system on any facility emitting more than 50,000 tonnes of greenhouse gas each year.”
“The GGPPA [Greenhouse Gas Pollution Pricing Act] received Royal Assent on June 21, 2018. It establishes the framework for the federal carbon pollution pricing system. The federal system consists of two main parts, which can apply in whole or in part in a backstop jurisdiction: A regulatory charge on fossil fuels (fuel charge), administered by the Canada Revenue Agency (CRA), and; A regulatory trading system for industry, known as the Output-Based Pricing System (OBPS), administered by ECCC through the Output-Based Pricing System Regulations (OBPS Regulations). […] The federal fuel charge came into force: on April 1, 2019 in Ontario, New Brunswick, Manitoba, and Saskatchewan; on July 1, 2019 in Yukon and Nunavut; and on January 1, 2020 in Alberta.”