Ontario Tax Incentives Take Effect

January 6 2003 - Tax incentives aimed at creating jobs in Ontario's small business and mining sectors took effect on January 1, 2003.

Finance Minister Janet Ecker said:

"Competitive tax rates have helped Ontario to create more than one million net new jobs since September 1995. These tax measures will help Ontario promote growth and new opportunities."

The tax cut schedule was announced in the June 2002 Ontario Budget. Ecker believes that Ontario continues to be well positioned for the future by focusing on the fundamentals that (according to the Eves government) are important to the people of Ontario - balanced budgets, competitive tax rates, and investments in priority areas such as health care, education and a clean and safe environment.

Specific tax measures include:

- The tax rate for small businesses has been reduced from 9.5% in 1995 to 5.5 on January 1. By 2005, it will be further reduced to 4%.

- The tax rate on mining was cut from 14% to 12% on January 1.

"Much of our future prosperity in Ontario will depend on the growth of small- and medium-sized businesses," Ecker said. "Furthermore, the tax cuts to the mining industry underscore the importance of mining to the northern Ontario economy."

Additionally, the Ontario Tax Reduction Program has been enriched to remove another 50,000 modest-income people from the tax rolls. In total, 745,000 modest-income people no longer pay Ontario income tax, but still pay federal tax.

"We will complete our current multi-year plan to make tax rates more competitive," Ecker added. "We will be seeking advice on a new multi-year plan to ensure that Ontario's tax structure continues to drive increased economic growth and prosperity."

One million new jobs created in Ontario since 1995