The Ontario Chamber of Commerce

Taxation

Taxes are necessary to achieve an appropriate level and quality of public services. However, poorly structured tax systems are burdensome and costly, creating a drag on economic activity and reducing the willingness of firms to invest, hire and expand.

Excessive taxation prevents Ontario firms from acquiring leading edge technologies such as machinery, equipment and software, which are the drivers of innovation. Given ongoing economic transition and global economic competition, Ontario’s tax regime must continually evolve in response to changing internal and external circumstances in order to create conditions for success.

Our Goal

In a highly competitive world, the onus is on government to ensure the right level of taxation and tax policies are in place to create equal opportunities for all economic sectors and regions of the province. In order to build on Ontario’s diverse sectoral strengths, the provincial government must ensure that taxes create the right conditions for regional economic development.

The Ontario Chamber of Commerce (OCC) believes all taxation initiatives must be designed with a view to leveling the municipal taxation playing field and achieving tax neutrality for industry.

Our Position

The Ontario government has recently taken many positive steps to create a more effective tax system for Ontario, including:

  • Elimination of the Capital Tax
  • Reduction of the Corporate Income Tax
  • Reduction of the Corporate Minimum Tax
  • Elimination of the Small Business Clawback
  • Accelerated Capital Cost Allowance for manufacturing and processing equipment
  • Introduction of the HST to reduce taxes on capital investments

The OCC encourages the government of Ontario to build on this momentum by:

  • Introducing a uniform Business Education Tax rate
  • Extending Fuel Tax Rebates to off-highway road transport
  • Reforming the taxation system on Ontario’s financial services industry
  • Altering the provincial property tax structure