Ontario Permanently Cuts Gas Tax and Removes Tolls on Highway 407 East
The Ontario government is officially making gas tax cuts permanent and removing tolls from Highway 407 East. This move aims to ease financial pressures on households and businesses while tackling traffic congestion in Durham Region.
Permanent Gas Tax Cut: Saving Families $115 a Year
Premier Doug Ford announced that the provincial gas and fuel tax rates will remain at nine cents per litre. This decision builds on the temporary tax cut introduced in 2022, which has already saved Ontario households $1.7 billion.
With tariffs threatening to drive up prices on essential goods, this tax relief will help families manage daily expenses. On average, households can expect to save $115 per year from this measure alone.
Highway 407 East Tolls to End on June 1
The province also confirmed that tolls will be permanently removed from the provincially owned portion of Highway 407 East. This stretch runs from Brock Road to Highway 35/115. Daily commuters could save up to $7,200 annually.
Transportation Minister Prabmeet Sarkaria emphasized that this will reduce commute times and put more money back in Ontarians’ pockets.
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Combating High Living Costs with More Measures
The province highlighted other efforts to reduce financial burdens:
- Elimination of licence plate renewal fees and stickers
- Freezing fees for driver’s licences and Ontario Photo Cards
- Legislation banning new tolls on public highways
These actions have saved individuals and families over $1.8 billion in the past year.
Impact on Small Businesses and Trucking Industry
Local leaders and industry groups praised the announcement. The Canadian Federation of Independent Business noted that 88% of Ontario small business owners support permanent fuel tax cuts. Meanwhile, the Ontario Trucking Association applauded the relief, calling it crucial for managing rising costs and cash flow challenges.
Restaurants Canada also expressed support, citing how lower gas prices boost consumer spending at restaurants while helping offset business operating costs.
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Calls for More: Full Highway 407 Buyback Unlikely
While this announcement fulfills an election promise, Ford’s government has resisted calls to buy back the entire 407 toll route. The Premier previously considered the idea but noted it could cost $35 billion—a figure that cooled discussions.
For now, the province focuses on practical steps like easing tolls and taxes to keep Ontario competitive and affordable.
What do you think?
Would you like to see the entire Highway 407 made toll-free, even if it costs billions? Share your thoughts in the comments.
More…
- https://www.thestar.com/politics/provincial/doug-ford-making-gas-tax-cut-permanent-ending-tolls-on-eastern-section-of-highway-407/article_e9b080cc-1046-4828-b207-4ddf3f347ed1.html
- https://news.ontario.ca/en/release/1005909/ontario-permanently-cutting-the-gas-tax-and-taking-tolls-off-highway-407-east
- https://globalnews.ca/news/11177210/highway-407-east-toll-announcement
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