CPA Public Affairs
February 2019

ON: CPA files Ontario pre-budget submission

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The CPA along with some of its Ontario members participated in the Ontario government’s pre-budget consultation process. Ontarians were asked to submit their ideas for the upcoming budget, the first for the new Progressive Conservative government.
The recommendations the CPA filed with the legislative committee reviewing submissions from the public, were:
  • Eliminate the 4.3 cents/litre propane transportation fuel tax. Natural gas is tax exempt as a means of reducing greenhouse gas and dangerous toxins in the transportation sector. That reasoning means low-emission propane should also be exempt.
  • Establish a conversion tax credit of up to $5,000 for commercial fleet owners to switch from diesel and gasoline to affordable and low-emission propane. Research has shown that investments in propane technologies can leverage the low prices of propane fuel, generating significant returns on investment (ROI) over the commercial vehicle’s lifecycle, while making significant contributions to reducing harmful emissions and improving air quality.
  • Establish a $2,500 tax credit for switching to low-emission propane in rural communities that lack access to the natural gas grid. Rural and remote Ontario communities deserve real choice in clean and affordable home heating fuels. The government’s decision to allow expanded natural gas service will not provide benefits to most rural and remote communities in the province. Government should ensure that Ontarians living in rural communities have an affordable and clean fuel choice — compared to the high costs of electricity, heating oil and diesel — through a tax credit for switching to low-emission propane in rural communities that lack access to the natural gas grid. An additional tax credit for remote communities would recognize the particular challenges facing isolated areas.
  • Invest in trade schools and encourage the promotion of trades that are important to the Ontario economy such as gas fitting. A shortage of 34,000 truck drivers is expected by 2024 in Canada, which will have a significant impact on all areas of the economy. A shortage of gasfitters is delaying interconnection of houses and businesses to energy sources such as propane.
The CPA will continue to pursue these and other important issues in our ongoing discussions with Ontario decision-makers.

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