Forecasts indicate a consistent decline in Canada's tax expenditure on fossil fuels for transportation as a percentage of GDP from 2024 to 2028, decreasing from 0.013% to 0.005%. This suggests a strategic shift potentially influenced by policy measures and a transition towards sustainable energy. The year-on-year reductions represent a downward trend with substantial percentage decreases, and a five-year compound annual growth rate (CAGR) illustrating contractions over this period.

Future trends to watch for include:

The impact of emerging technologies and alternative fuels on fossil fuel taxation.
Government policies pushing for reduced carbon emissions.
Adoption rates of electric vehicles affecting fossil fuel demand.
Broader economic shifts impacting GDP and tax revenues.