Increase in tax on fuel a crushing blow to general aviation
May 2, 2014, Ottawa - At a time when the fuel price for aviation gasoline is at an all-time high and 30 to 40% higher than automotive gasoline, the Ontario government, without consultation with COPA or anyone else who uses this fuel, unilaterally decided to punish this important sector of aviation with a 150% increase in taxes.
“This is simply unfair”, said COPA President Kevin Psutka. “Our sector generates the next generation of pilots and mechanics, serves as a form of transport to a significant portion of the province that can only be reached by small aircraft and serves as a form of personal transportation and recreation, just like the family car. In addition, the significantly higher base price compared with automotive gasoline also generates 40% more revenue for the province via the HST compared with the equivalent volume of automotive gasoline.”
The Province eliminated the aviation component of its Ministry of Transportation in the 1990s and since then has been a rudderless ship regarding support for General Aviation. “It does not surprise me that a government that has walked away from our sector would then decide to treat it as a cash cow, redirecting revenue generated by this punishing tax to other programs rather than investing in the province’s aging airport infrastructure”, said Psutka.
Compared with virtually all other provinces, Ontario’s tax on aviation gasoline will be well above the others by several cents per litre.
A strongly worded letter was sent to the Ontario Premier, copied to the opposition. “I urge each COPA member to make their feelings known directly to their provincial political representatives and to remember the draconian decision when the next election is held."