OTTAWA, Jan. 25 /CNW/ - Ontario could create jobs, attract thousands
more tourists and stimulate its economy by following the lead of other
Canadian provinces and eliminating taxes on aviation fuel for
transborder and international flights, according to a new study.
"For a rather small investment, the Government of Ontario can provide
important stimulus that can generate long-term economic benefits for
the province," says Fred Lazar, a business professor at the Schulich
School of Business at York University, who prepared the report.
"Moreover, the removal of the fuel tax on international flights can
improve Pearson Airport's chances of becoming among North America's
leading international gateway airports."
The independent report, commissioned by the National Airlines Council of
Canada (NACC) and the International Air Transport Association (IATA),
examines the return on investment for the Ontario government to rescind
the 2.7¢ per litre aviation fuel tax on transborder and international
flights departing from Ontario airports.
Ontario is one of the few jurisdictions in Canada to levy a fuel tax on
international flights. Removing the tax would stimulate the province's
tourism industry and overall economy the study found. It concluded that
eliminating this tax could lead to additional economic output of
between $59 and $74 million, 19,000 to 29,000 more tourists per year,
and an additional 690 to 1,015 jobs in the province.
"The removal of the provincial tax on aviation fuel used for transborder
and international air services would substantially improve the cost
competitiveness of Ontario's airports and allow airlines to enhance
their product and service offerings to consumers," said George
Petsikas, President of the NACC.
The Government of Alberta eliminated its aviation fuel tax on
transborder and international passenger and cargo flights on March 1,
2004. The province of British Columbia has recently followed suit with
legislation to eliminate a similar tax by April 1, 2012.
A link to the report is posted on the NACC Website at www.airlinecouncil.ca
The National Airlines Council of Canada is a trade association founded
by Canada's largest commercial airlines in order to ensure safe,
sustainable and competitive air travel for Canadian consumers.
The International Air Transport Association represents some 230 airlines
comprising 93% of scheduled international air traffic.
SOURCE National Airlines Council of Canada
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