Particle.news

Download on the App Store

Ontario Moves to Permanently Cut Gas Tax and Eliminate Tolls on Highway 407 East

The proposed legislation, part of the 2025 budget, locks in a nine-cent-per-litre gas tax rate and removes tolls on the provincially owned stretch of Highway 407 starting June 1, 2025.

Image
Image
A stretch Highway 407 is seen in Pickering, Ont., Wednesday, Feb. 5, 2025.
Image

Overview

  • The Ontario government has introduced legislation to make the gas and fuel tax cut permanent, maintaining the tax rate at nine cents per litre.
  • Tolls on the provincially owned section of Highway 407 East, from Brock Road to Highway 35/115, will be permanently removed if the legislation is approved.
  • The gas tax cut, first introduced in 2022 and extended four times, has cost the province $1.7 billion to date.
  • Daily commuters on the toll-free section of Highway 407 East are expected to save approximately $7,200 annually starting June 1, 2025.
  • While the measures aim to provide immediate cost-of-living relief, experts warn of potential impacts on public transit funding, congestion, and climate goals.