The Toronto Automobile Dealers Association (TADA) says it has successfully fought off an attempt by the Ontario government to bring new regional gas taxes and road tolls to the province. These extra costs were recommended by Don Drummond, the Chair of the province’s Commission on the Reform of Ontario’s Public Services.
In a letter to Premier McGuinty, the TADA highlighted that Ontario drivers already pay an estimated $9.6 billion in taxes and fees associated with vehicle ownership to the provincial government every year.
This week’s provincial budget confirmed that the cost of owning and operating the family car will increase through vehicle and licensing costs. It is estimated that $340 million will be generated from these increases when fully implemented in 2014-15. The Ministry of Transportation will also reduce highway expansion and HOV projects by $229 million over the next six years. The TADA says it will continue to press the government to publicly disclose exactly which roads and bridges will benefit from this extra revenue every year.
“A significant amount of the family budget goes towards operating the family car – including 4 separate taxes on gasoline and other mandatory costs. Drivers have been paying an extra 8 per cent in taxes on gasoline since the introduction of the HST and can’t afford to pay five separate taxes just to fill up their car,” says Frank Notte, the TADA’s Director of Government Relations.
“If the Ontario Government claims higher vehicle and licensing costs will go towards paying for roads and bridges, they must publicly disclose how much of the extra revenue will go towards specific road and bridge projects. Otherwise, drivers can safely assume the extra money they are paying will go towards paying down Ontario’s $15 billion deficit,” says Notte.