McGuinty Budget Means Huge Sales Tax Increases

March 27, 2009

(Queen's Park - March 26, 2009) - The McGuinty Liberal government will dramatically hike sales taxes starting next year. The single sales tax would combine the GST and PST at a combined rate of 13 per cent. Some of the goods and services to see increases will be:

  • - Gasoline at the pumps and home heating fuel
  • - Your hydro bill, cell phone bill, cable and internet
  • - Services such as haircuts, vet bills
  • - Almost every other service on which you currently pay the GST, but not provincial sales tax

The budget claims to balance the sales tax increase with income tax cuts and rebates. Families will receive a maximum $1000 rebate if they make under $160,000, individuals $300 if they make under $80,000. These will be one-time payments, delivered in three cheques.

Viewpoint: Julia Munro, MPP for York-Simcoe:

"Consumers and small businesses cannot afford an increase in sales taxes. Hundreds of service businesses and others will be forced to raise their prices by 8% - in the middle of a recession."

"Ontarians will pay more for everything for a visit to the barber or hairdresser to their hydro and heating bills".

"Providing a so-called rebate in three installments is a cynical move by the government - with the last payment coming right before the next election. Voters need to remember that these rebates are one-time payments - but the sales tax increases are forever."

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For further information, contact:

Julia Munro, MPP

416-325-3392