Business unites in alliance for sales tax reform
Media Releases
Today the Ontario Chamber of Commerce joined a group of non-partisan business leaders to demonstrate the broad-based support for sales tax harmonization.
The Smart Taxation Alliance includes the Ontario Chamber of Commerce, AGS Automotive Systems, Canadian Chamber of Commerce, Canadian Council of Chief Executives, Canadian Manufacturer’s & Exporters Ontario, Certified General Accountants of Ontario, Ontario Road Builders’ Association, Ontario Trucking Association, Retail Council of Canada, TD Bank Financial Group, and the Toronto Board of Trade.
“Modernizing Ontario’s PST by transforming it into a Value-Added Tax is a right step towards enhancing the international competitiveness of manufacturers. Removal of the non-recoverable PST on many essential business inputs such as returnable containers, packaging materials, computer hardware & software, office equipment & furniture, telecommunications etc. will reduce the cost of manufacturing and eliminate the sales tax burden on exports. More than 150 countries that Ontario competes against have a Value-Added Tax system, including China, Mexico and India. HST levels the playing field. Dealing with one set of rules, one administration, one audit significantly reduces administrative burden and red-tape. Disputes regarding what is covered by the manufacturer’s exemption or what is being purchased for resale become non-issues.” Winston Woo, Director, Taxation & Pensions, AGS Automotive Systems
Positive impacts of a single sales tax, when combined with other announced tax reforms will include:
- Cutting the marginal effective tax rate on new investment in half;
- Encouraging business investment in Ontario and the creation of jobs;
- Cutting in half the red tape suffered by businesses in Ontario in the collection, remittance and auditing of sales taxes, for an estimated annual savings of $500 million;
- Removing layers of embedded taxes in goods and services throughout Ontario valued at roughly $5 billion;
- Leveling the playing field with all goods and services in the economy so that all sectors contribute equally to revenue generation in the province; and,
- Increasing competitiveness of Ontario business.
