Tuesday, February 27, 2024

Ontarians facing increased gas tax

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The federal government has raised some taxes The Canadian Taxpayers Federation CTF said it will affect Ontarians differently

The federal government has raised some taxes. The Canadian Taxpayers Federation (CTF) said it will affect Ontarians differently.

CTF’s Ontario director Jay Goldberg said Canadians are in financial trouble. At the same time many are going through difficult times.

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The non-profit organization released its annual report on Jan. 2 and outlined six additional taxes that Ontarians will face at the federal level.

Anyone earning $68,500 or more a year through a Canadian pension plan will have to pay an additional $133. The same rate has to be paid to their employer. Those earning $63,200 will have to pay an additional $47 for employment insurance tax. Their employer will incur an additional cost of $65. In addition, the payroll tax will increase by 347 dollars. However, it will depend on income, CTF said.

The federal carbon tax is set to increase from April 1 this year. In that case, the carbon price per ton will increase from $65 to $80. The Canadian government’s second carbon tax is also expected to raise gas prices by up to 17 cents a litre.

According to the Parliamentary Budget Officer, this could increase the average household’s annual spending from $384 to $1,157 by 2030.

Home heating costs are also expected to increase. The federal government has suspended the carbon tax on home heating oil for the next three years. Although most Ontarians use natural gas to heat their homes, Goldberg said. He said the average Ontario household spends about $300 on electricity to heat a home. If the increase is from April 1, the bill will be close to $400.

The federal liquor escalator tax is also set to increase by 4.7 percent starting April 1. CTF says tax is half the price of beer right now. The tax is 65 percent of the value of wine and three-quarters of the value of spirits. The payroll tax has already been implemented. The group is calling on Canadians to petition elected officials to ensure that the new carbon and liquor taxes are not increased before April 1.

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