Ontario Government Plans to Cut Gas Tax; Proposing Taking Tolls Off Highway 407 East

The Ontario government plans to permanently cut the gasoline and fuel tax rates and proposes to remove tolls from the provincially-owned areas of Highway 407 East, announced on Tuesday.

Photo courtesy of the Ontario Government.

The gas tax is estimated to save about $115 per year and the proposed toll removal would save daily commuters roughly $7,200 annually according to Doug Ford, Ontario Premier.

“I know that families and business owners are worried about rising costs, especially as U.S. tariffs threaten to raise the price of everyday essentials,” he’s aid. “That’s why we’re cutting the gas tax permanently and taking tolls off Highway 407 East, and that’s why we’ll always keep looking for ways to put more money back into the pockets of Ontario families.”

The proposals are through the Ontario government, which is introducing legislation through its 2025 Budget. If passed, it would permanently cut the gas and fuel tax rate, resulting in provincial tax rates at nine cents per litre.

“Ontario families have seen prices on everyday items go up over the last several years,” said Peter Bethlenfalvy, Minister of Finance. “To help Ontarians cope with the high cost of living and the impacts of the economic uncertainty caused by tariffs, we are continuing to take action to ease the pressure and do more to help lower costs for households.”

The provincial government is also introducing legislation to permanently remove tolls on Highway 407, from Brock Road to Highway 35/115, effective June 1. This is the last stretch of Ontario's provincially owned and tolled highway. It follows the government’s previous removal of tolls from Highways 412 and 418 and its recent legislation banning new road tolls on any public roadway in Ontario.

“Our government is making it easier and more affordable for Ontarians to get where they need to go, when they need to get there,” said Prabmeet Sarkaria, Minister of Transportation. “The measures announced today will not only help to reduce traffic and commute times, but they will help put money back in the pockets of hardworking families at a time when it matters most. This is another step in our work to protect Ontario by building a more efficient, affordable and accessible transportation network.”

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