One year later, time for Ford to keep his gas tax promise

Exactly one year ago to the day, Doug Ford promised Ontario voters that if elected, his party would eliminate cap and trade and reduce the provincial excise tax on gas. He kept one promise, and now it's time to keep the other. As premier, Ford kept his word by eliminating cap and trade as the first act of his government. He repealed the Wynne-era tax and, as a result, consumers experienced relief, as gas prices were reduced by about 4.6 cents per litre. But that savings was quickly eaten up by the Trudeau carbon tax, which came into effect on Apr. 1 of this year.

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Relief at the pump was an important part of Ford's campaign platform, and voters still deserve the savings he promised them. Since Prime Minister Justin Trudeau took half the promised savings away, now it's time for Ford to keep the second half of his pledge by reducing the provincial excise tax on gas. On May 16 of last year, Ford announced at a campaign stop at a gas station that he would reduce the provincial excise tax on gasoline from 14.7 cents per litre to 9 cents per litre. Because sales tax is applied on top of the provincial excise tax (yes--there is a tax on tax), cutting the excise tax would end up saving consumers about 6.4 cents per litre. As gas prices are climbing ahead of the May long weekend and many people are heading off to visit family and friends and enjoy the spring weather, their lives would be made easier if the cost of driving was lower. And a large part of this cost is controlled by the government. While the price of crude fluctuates with the global market, in Ontario about 35 per cent of what we pay for gas is tax. With control over 35 per cent of the price, politicians can take credit or blame for a big chunk of what it costs us to drive. Ford was happy to take the praise for the reduced prices after the cap-and-trade carbon tax was repealed, as well he should. And he should continue to take praise for his principled battle against the federally imposed carbon tax that is now costing Ontario consumers an additional 4.42 cents per litre.

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If that battle succeeds, and if the premier keeps his word and reduces excise taxes, the total savings will actually be even greater than the 10 cents per litre he originally promised, because sales tax is applied on top of both the excise tax and carbon tax. A 9 cent provincial excise tax and cancelled carbon tax would mean 11.4 cents per litre in savings. But until that battle is successful, Ontario taxpayers are not seeing any of the tax savings they were promised one year ago. The blame for that is with both Ford and with Trudeau. In Prince Edward Island and Newfoundland and Labrador, the provincial governments imposed their own carbon tax, but simultaneously reduced the provincial excise tax. In PEI, the excise tax was reduced by 3.42 cents per litre, and in Newfoundland it was reduced by 4 cents per litre. In Ontario, we are stuck with Trudeau's federal carbon tax and no corresponding excise tax reduction, despite the premier's explicit promise. It's time for Ford to keep his word to voters and consumers and give us the tax relief we voted for. It's time to cut the provincial excise tax. This column was previously published by the Toronto Sun

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