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."
