H.S.T. kicks in next week

News Release
Ont. Govt.

Ontario’s tax plan will create a climate to attract business investment and increase economic competitiveness. The plan will make the province one of the most competitive jurisdictions in the world for business investment.
Ontario is modernizing an outdated, 50-year-old, tax system by cutting taxes for people and businesses and combining two existing sales taxes into one - the HST - removing the hidden taxes that we all pay. This will put Ontario on a level playing field with four other provinces and 140 other countries that already have a value added tax like the HST.
Previously the federal 5% Goods and Services and 8% Provincial Sales taxes were collected seperately. Now a single or Harmonized Sales Tax will be collected in Ontario beginning July 1, 2010.
Ontario will become one of the most tax-competitive jurisdictions in the industrialized world, develop a stronger, more competitive economy and independent experts say almost 600,000 new jobs will be created over the next 10-years.
This tax package is a key component of the five-year Open Ontario Plan, which supports job creation and enhances the programs and services, including education, health care and skills training, that Ontarians value.
“Creating an environment that will help attract new investment to Ontario is a key component of our government’s tax plan. Ontario companies will be more competitive, meaning they’ll sell more products which will mean more new jobs in communities across the province. We have the right plan for the economy, the right plan for families and the right plan for Ontario,” said Dwight Duncan, Ontario Minister of Finance
For 83 per cent of consumer spending, like basic groceries, rent, electronics and clothing, there will be no change in sales tax. The sales tax on 17 per cent of spending will increase, on things like gas, electricity and hair cuts
As a result of Ontario’s tax plan, 93 per cent of income tax payers received an income tax cut on January 1, 2010
The Ontario Sales Tax Transition Benefit payments will provide up to $1,000 to most families (including single parents), or up to $300 for most single people
The new permanent Ontario Sales Tax Credit will provide low- to middle-income people up to $260 per person a year
Annual investment in equipment and machinery rose by more than 12 per cent in the years following sales tax harmonization in the Atlantic Canada provinces