TADA Supports PC Plan to Reduce Gas Tax

TADA Supports PC Plan to Reduce Gas Tax
Todd Bourgon, Executive Director, TADA. (Photo: Jack Kazmierski)

The Trillium Automobile Dealers Association has said it supports a plan by the Ontario Progressive Conservative party to reduce provincial gasoline taxes.

“An overwhelming majority of Ontario families—83 percent—say the family car is essential to their household,” said TADA Executive Director Todd Bourgon. “With the price of gasoline approaching an all-time high and no immediate relief in sight, governments should reduce taxes on gasoline to make vehicle ownership and running a business more affordable.”

Representing 1,100 new car dealers in Ontario, TADA is applauding Ontario PC Leader Doug Ford’s announcement to reduce gasoline taxes by 10 cents per litre. This policy will be beneficial for consumers and auto dealers.

TADA says relief for such an important commodity like gasoline should be a priority for all governments. “Unfortunately,” said Bourgon, “governments continue to put taxes on gasoline. In Ontario, consumers and auto dealers pay an astonishing five separate taxes on gasoline.” These taxes include:

  1. 14.7 cents per litre for the Ontario gasoline tax
  2. 4.3 cents per litre Cap and Trade tax
  3. 10 cents per litre for federal gasoline tax
  4. 8 percent provincial portion of the HST; and
  5. 5 percent federal portion of the HST

According to Natural Resources Canada, on May 16, 2018, the average price of regular gasoline in Toronto was $1.375 per litre, with 40.5 cents—30 percent—of that accounting for taxes. “With so many taxes placed on gasoline,” said Bourgon, “we believe the government can afford to give consumers and businesses a break.

Bourgon also added that, “our association prides itself on working with all three political parties at Queen’s Park. We look forward to working with them as they develop their 2018 election platforms, advocating for policies to support auto retail by lowering the costs associated with vehicle ownership and operating a dealership.”

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