Ontario raises aviation fuel tax to highest level in Canada
April 1, 2015, Ottawa - The National Airlines Council of Canada (NACC), the industry trade association representing Canada's largest passenger air carriers, expressed ongoing disappointment with Ontario's continuing increase to the province's aviation fuel tax. Today, the tax was increased to 4.7 cents-per-litre, making it the highest in the country. The increase is the second phase of the 148 per cent hike introduced by the Government of Ontario's 2014 Budget.
"Canadian air carriers reiterate that the Ontario government's decision to move forward with the aviation fuel tax increase is harming Ontario's economy, and negatively affecting communities, consumers and businesses across the province," said Marc-André O'Rourke, Executive Director of the NACC.
"Ontario's aviation fuel tax is now the highest in Canada and is deepening the province's uncompetitive gap with neighbouring provinces and U.S. states. Sadly this type of policy plays into the hands of U.S. and other airports around the world as Ontario sits idly back and continues to lose much needed passengers, jobs and trade" added O'Rourke.
The aviation sector is an economic driver and part of a high-value supply chain. Businesses and industries across Ontario depend upon reliable, accessible air transportation to connect with their customers and market Ontario's economy to the world. Canada's airlines play a vital role in connecting Ontario's regional economies to the global economy, and supporting a healthy tourism sector in the province.
The NACC continues to call upon the Ontario government to freeze any further aviation fuel tax increase until a full review of its economic impact and other consequences can be understood. This should include collaborative and meaningful consultations with communities, local tourism industries and the aviation sector.