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Ontario Government Making Life More Affordable in the North

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Ontario Government Making Life More Affordable in the North

Reducing Aviation Fuel Tax Rate in Northern Ontario Part of the Government’s Plan to Build Ontario Together

Ministry of Finance

SAULT STE. MARIE — The Ontario government is delivering on its commitment to reduce the aviation fuel tax rate in Northern Ontario, helping to lower the cost of living for people in the region.

Finance Minister Rod Phillips was joined by Ross Romano, Minister of Colleges and Universities and MPP for Sault Ste. Marie, at the Canadian Bushplane Heritage Centre to talk about the government's plan to make life more affordable and put more money in people's pockets.

As announced in the 2019 Ontario Economic Outlook and Fiscal Review: A Plan to Build Ontario Together, the government is proposing to cut the aviation fuel tax rate in the North to 2.7 cents per litre from 6.7 cents per litre.

"Living in Northern Ontario can bring with it a higher cost of living, in part because of greater reliance on air travel and air freight," said Minister Phillips. "That is why we are helping reduce costs in this region by cutting the aviation fuel tax rate."

The lower aviation fuel tax rate would help reduce costs on things like groceries and air travel. This reduced rate would apply to aviation fuel purchases in the North as of January 1, 2020.

"Our government has heard loud and clear that people from all walks of life - especially those who live in Northern Ontario - are tired of paying more and getting less," said Minister Phillips. "That is why we have a plan to make life more affordable for families and individuals in every corner of the province."

Minister Romano added: "We are putting more money in people's pockets by reducing taxes, helping families with child care expenses and ensuring postsecondary education is affordable. By taking these concrete steps, we are ensuring that Ontario continues to be a place to live, work and play."

Greg Rickford, Minister of Energy, Northern Development and Mines, will talk more about the government's plan to make life more affordable in Northern Ontario today at the Thunder Bay International Airport.

"Northerners know all too well about the high costs of essential goods in the north and the great distances we travel as a part of everyday life," said Minister Rickford. "Our government recognizes these unique challenges, and through this aviation fuel tax cut, we are taking real action to make life more affordable for the hardworking families across Northern Ontario." 

Reducing the aviation fuel tax rate in Northern Ontario is part of the government's balanced and prudent plan to build Ontario together. Ontario's plan is creating more jobs, putting more money in people's pockets, making our communities healthy, our streets safe, our commutes shorter and our government smarter.

Quick Facts

  • The reduced aviation fuel tax rate would apply to the districts of Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury, Thunder Bay, and Timiskaming.
  • Buying groceries for a family of four in the North could cost about $980 per month or more. This proposed tax rate reduction could save this family about $230 per year.
  • Minh, who lives in Thunder Bay, travels to Red Lake every month to visit his mother. This proposed tax rate reduction could save Minh about $135 on his travel per year.

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