Retail Council Of Canada Urges Government To Cut Ontario's Sales Tax

by Amanda Banks, Tax-news.com, London

09 May 2001

The Retail Council of Canada (RCC) has called on the Ontario government to reduce the Provincial Sales Tax (PST), currently set at 8 per cent, by one percentage point. In doing so, says the RCC, the tax cut would stimulate the province's economy. According to a statement released by the RCC President and CEO Diane Brisebois: 'Ontario consumers face an uncertain economic outlook. A cut of one per cent in the PST would bolster confidence and put more dollars directly into consumers' wallets.'

The RCC highlighted information from Statistics Canada, according to which consumers in Ontario spent a total of (Canadian) $106.3 billion last year - an average of $295 million for each day that stores were open for business. They were charged an additional $23 million each day for PST and the RCC estimates that reducing the sales tax by 1 per cent would put $1.7 billion back into the wallets of Ontarians each year.

Ms Brisebois commented: 'The retail sector, which employs more than 650,000 Ontarians, is key to the health of the province's economy. The government must take every practical measure to ensure that this cornerstone industry continues to flourish. A cut in the sales tax will provide an immediate boost, stimulating investment in the province, job growth, consumer confidence and spending power.'

The Ontario government's decision to either reduce the PST or maintain it at its current level will be revealed some time today by Finance Minister, Jim Flaherty, when he delivers the provincial budget. Ms Brisebois concluded: 'The Retail Council of Canada has been a long-standing proponent of tax cuts as a major economic driver. We applauded the Ontario Government's move in 1995 to cut Personal Income Taxes, and we urge ... Jim Flaherty to go the next step in his budget ... and bring further relief to taxpayers.'

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