Aviation fuel tax increases a pain for northern Ontario economy: chamber

The President of the Thunder Bay Chamber of Commerce says ongoing provincial tax rate hikes on aviation fuel are hurting northern Ontario's economy.

Charla Robinson says the Ontario tax rate has increased one per cent each year since 2014 — and she expects the increase will continue through April of 2017.

Ever-increasing tax has been devastating in a region already paying abnormally high fuel costs, she said.

"That really adds to the cost of the businesses that are operating regional airlines, of course," she said.

"And they have to pass that on to their customers. So each one cent increase in the aviation fuel tax actually adds two cents per pound for cargo deliveries."

An ever increasing tax on aviation fuel is especially hurting remote First Nations, she said. 

"It makes the already unaffordable produce and dairy options even more expensive," Robinson noted.

"And, of course, it also leads to increased air fares. So, it makes it harder for us to get in and out of those First Nations communities."

Robinson told CBC News she has made her case to Ontario Premier Kathleen Wynne.

She said the chamber was assured the government will implement an exemption for communities unduly burdened by the aviation fuel tax. But the tax is almost three years in, and there has still has been no exemption.