Ontario Government to Match Federal 2-Month Tax Break

Ontario’s finance minister says the province will match Ottawa’s tax holiday by removing its provincial sales tax on products excluded from existing provincial rebates.
Premier Doug Ford has previously said he was in favour of the tax break and Finance Minister Peter Bethlenfalvy has now confirmed Ontario will be supporting the HST holiday.
Ontario has historically excluded the provincial portion of the harmonized sales tax from some of the items listed by Ottawa for its GST holiday, such as children’s clothes and grocery staples, but has traditionally charged tax on alcohol and restaurant bills.
The provincial portion of the HST tax break will provide “nearly $1 billion in additional relief for Ontario families,” Bethlenfalvy said in an emailed statement.
“The provincial government will match the federal government’s two-month GST holiday by removing our portion of the HST from items not currently covered by existing provincial rebates,”  Bethlenfalvy said.
The decision was made after engaging in “extensive discussions” with the federal government about “how we can continue to work together to advance Ontario’s priorities,” the minister added.
HST in Ontario is 13 percent and 15 percent for the Maritime provinces.
New Brunswick and Prince Edward Island have asked for compensation from Ottawa to cover their lost revenues from the tax break, while Newfoundland and Labrador has not. Nova Scotia was in the midst of an election when the GST measure was floated, which concluded Nov. 26.
Canadians in provinces with HST would see more savings, Ottawa said. Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island families that spend $2,000 would save $260.
The Liberal government introduced a stand-alone bill to implement its proposed GST holiday Nov. 27. The proposed legislation must be passed in the House of Commons before it can become a reality.
Bethlenfalvy has previously suggested Trudeau borrowed the rebate idea from its provincial counterpart.