IMPLEMENTATION DATE: July 2010
YOUR PROVINCIAL MEMBER OF PARLIAMENT: John Yakabuski
TELEPHONE: 613 735 6627 OR 1 800 267 2515
www.fin.gov.on.ca/english/budget/ontariobudgets/2009/chpt3.html
OF PARTICULAR NOTE:
13%
harmonized sales tax on most services (many services previously not subject to
13%
harmonized sales tax on new homes (homes under $500,000 subject to partial
rebate)
13%
sales tax on certain taxable financial services
Bicycles
were exempt from
Energy
efficient appliances were exempt from
Commercial
rents will be subject to 13% harmonized sales tax
Transient
Accommodations will be subject to 13% - increased from 10%
. Transition
credits of up to $1000 provided to businesses to support changes in their point
of sales equipment
. RST Vendor
compensation would be discontinued (presently provided for PST collections)
. Businesses would
see an increase in the “input tax credits” they are able to claim
. Public
Service Bodies (Municipal Government, Colleges, Hospitals, Charities,
Non-Profit Organizations would be fiscally neutral.
. Families
earning less than $160,000 would receive up to $1,000 during the transition
period
. Businesses
will see an increase in the value and number of items eligible for input tax
credits
YOU ARE ENCOURAGED TO RESEARCH THE PROVINCE’S PROPOSAL
AND
DETERMINE HOW IT WILL AFFECT YOUR BUSINESS.
CALL YOUR MPP AND VOICE YOUR OPINION!
SEE BELOW FOR RESPONSE RECEIVED FROM PREMIER MCGUINTY
in email to CABA member, Moira Hutchison,
Our government's highest priority is to help Ontarians
through this
recession and build a
stronger, more competitive economy. Moving to a
modern single sales tax,
beginning
important things we can do
to create jobs and position our economy for
future growth.
provinces have already done
- modernized their tax systems to boost the
economy and make it more
competitive. The single sales tax would also
benefit all Ontarians by
attracting more investment to the province.
Businesses would see cost savings, which would lower
prices for
consumers.
To help families adjust to the single sales tax, we
would provide $4
billion to Ontarians.
Families with incomes of less than $160,000 would
receive $1,000, and
individuals earning $80,000 or less would receive
$300. In all, about 6.5
million families and individuals in
would receive sales tax
transition benefits. We would also provide a
number of exemptions on
items such as books, children's clothing and
footwear, diapers,
children's car seats and car booster seats, feminine
hygiene products and newly
constructed homes under $400,000.
We are also proposing to cut taxes so that 93 per cent
of
taxpayers would pay less
personal income tax. Ontarians would receive a
16.5 per cent cut in the tax rate they pay on the
first $36,848 of
taxable income, and low-
and middle-income families would see a new
sales tax credit of up
to $260 per adult and child to replace the
existing sales tax relief
provided through the Ontario Tax Credits.
Business taxes would be cut by $4.5 billion over three
years, making
proposed corporate income
tax cuts and single sales tax would cut
The corporate income tax rate for small businesses
would be cut by 18
per cent, and the
general corporate income tax rate would be cut by 28
per cent. For more
details on our proposed tax reform package, please
visit http://www.fin.gov.on.ca/english/budget/ontariobudgets/2009/bk_tax.html
Ontarians have been through tough times before - and,
by working
together, we have always
pulled through. As in other times of
uncertainty, our province will
rise to the challenge and seize
opportunities to
strengthen economic growth, create new jobs and
continue to be a great
place to live and invest.
Thanks again for contacting me. I welcome your input
and assure you that
your views will be
taken into consideration in our efforts to stimulate
the economy for the
benefit of
Premier of
<http://www.premier.gov.on.ca/feedback/default.asp>.
This
2 page document prepared for CABA members, June 2009.