Ontario's Old
Gasoline Tax to be Eliminated
A
16.6¢/litre price reduction at the pumps
March 2, 2011 Toronto - On July 1, 2010,
Liberal Premier Dalton McGuinty's introduction of the
H.S.T. translated into a new 8% provincial tax on gasoline
sales. The new tax taxes not only the actual price of the
fuel, but also the 14.7 cents/liter Ontario gasoline tax.
A 2011 election plank
released today by Freedom Party of Ontario calls for the
elimination of the old 14.7 cents/litre gasoline tax.
The plank is being promoted with a new pre-election video
advertisement, also released today, which is available here.
Click on the Image to Watch the Video
"The old gasoline tax was introduced by the Conservatives in
1925"
says Freedom Party leader Paul McKeever. "When combined
with the H.S.T., the effective rates of taxation are
outrageously high. At the current price of approximately
$1.20 per litre, the effective rate of taxation is 47.2%.
What is worse, because the gasoline tax is not sensitive to
price changes, the effective rate of gasoline taxation
increases as the price at the pump decreases. For example,
were the pump price to fall to 64 cents/litre, the effective
rate of taxation would be not 47.2%, but 100%.
"Two taxes is too much. A Freedom government will eliminate
Ontario's old 14.7¢ per litre gasoline tax. When H.S.T. is
taken into account, that will reduce the price at the pumps
by 16.6¢ per litre."
For further details, contact:
Paul McKeever, Leader - Freedom Party of Ontario
e-mail: pmckeever@freedomparty.on.ca
Freedom Party has been releasing 2011 election planks
since early October of 2010. A complete list of the planks
released so far can be viewed here.
Freedom Party has also released a number of pre-election
video ads to promote its planks. They all can be viewed on
Freedom Party's youtube channel, https://www.youtube.com/fpontario .
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