Hudak, Miller not in harmony with HST

Dave Dale
North Bay Nugget
July 31, 2009

Conservative Opposition Leader Tim Hudak brought his fight against the Liberal government’s proposed harmonized sales tax to North Bay Thursday.

Hudak and Conservative finance critic Norm Miller said the blending of the provincial sales tax and goods and services tax will increase vacation costs for people going to events such as this weekend’s North Rocks the Bay festival.

Before you reach your destination,” Hudak said, Dalton McGuinty’s new tax will hit you even more times than the kids will ask, ‘Are we there yet?’”

Gasoline, coffee, lunches, hotels, campground fees, fishing licences, golf fees and various other products and services will be subject to the PST for the first time when it’s combined with the GST, Hudak said.

Hudak said the province’s tax rebates and income tax changes will not cover the added costs.

Miller and Hudak also spoke to the North Bay and District Chamber of Commerce executive, which has endorsed the harmonization plan, because it saves businesses paperwork and costs.

They also have a meeting planned with Mayor Vic Fedeli, who has said the HST is poorly timed for implementation in 2010 due to the economic conditions.

Launching it now, just talking about it, holds up spending,” Fedeli said after meeting with the Tory pair.

While Hudak tried to keep his trip focused on the HST, Fedeli said he told him there are other priorities the city has, including the desire to see more government jobs moved here from Toronto.

It would change the fabric of the community to have another 300 people here,” he said.

Sean Lawlor, chamber president, said his group agrees with the single-tax system in principle,” but noted certain sectors expect to be hit harder than others and more exemptions are needed.

Obviously consumers are going to see an increase in costs, although some will be affected by credits,” Lawlor said, adding a single-tax system makes sense in the long term.

Every province is moving toward tax harmonization, as well as other countries . . . It has become one of those things and we have to keep up with the pace,” he said, adding the province could do a better job consulting about communicating its plan.

A lot of people don’t have a clue how this will affect them.”

Tourism Minister Monique Smith said tax reform is necessary to attract business to the province to help recover from the economic downturn.

Smith said British Columbia announced last week it’s also harmonizing its sales tax, as have several other provinces.

The Nipissing MPP said Ontario wants to do the same because it makes running a business less expensive when only one tax reporting system is in place.

She also said business will see tax cuts and tax credits previously unavailable to them.

It’s change for the better,” she said, adding 96% of Ontario taxpayers will see a reduction in the amount of overall taxes they pay after permanent personal tax cuts are implemented.