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Home > Government Relations > Finance

Government Relations
Finance


2008 Provincial Budget Highlights

On March 25, Dwight Duncan, Ontario’s Minister of Finance released the details of the 2008 Provincial Budget.

With economic growth of 2.1% in 2007, a provincial surplus of $600 Million is projected for 2008, and the total budget for 2008 is $96 Billion.

Ontario’s economy created 101,100 net new jobs in 2007, a gain of 1.6%, the largest increase since 2004. The accommodation and food services industry had a net increase of 26,500 new jobs in 2007. The Ministry of Finance is projecting employment to increase by 1% in 2008, and real GDP growth of 1.1%.

The ORHMA was pleased to see a number of its pre-budget recommendations addressed, specifically with regard to investment in tourism, support for the Windsor border crossing, and minimum wage.

Of interest to the hospitality and tourism industry:

Tourism
• $110 Million in tourism to strengthen and expand tourism in Ontario, including:
• extending the Retail Sales Tax exemption for Destination Marketing Fees by two years to June 30, 2010
• committing $8 Million over 2 years to conduct research, to be led by MPP Greg Sorbara, to strengthen the competitiveness of Ontario’s tourism industry
• $50 Million over the next 4 years in tourism marketing and the Festival and Events Attraction and Support Program, to support Ontario festivals and events, and promote Ontario as a major tourist destination
• making permanent the Retail Sales Tax exemption on admissions to live theatres of not more than 3,200 seats

Taxation
• accelerating reductions to the Business Education Tax Rate in Northern Ontario to ensure that northern business will benefit from the full BET reduction by 2010, four years earlier than originally announced, saving northern businesses more than $70 Million
• modernizing business and financial regulations and streamline approval processes to help reduce red tape for businesses
• mandatory phase-in of property assessment increases will be expanded to include all property classes, including commercial, industrial and multi-residential

Job Creation
• $1.5 Billion over 3 years for a Skills to Jobs Action Plan, including:
• training unemployed workers for new careers and expanding apprenticeships by 25%
• $335 Million for a Second Career Strategy to provide training for 20,000 unemployed workers

Infrastructure
• a commitment to fully fund its share of the final proposed road link between Highway 401 and the new Windsor border crossing, with construction scheduled to begin in 2009 and concluded by 2013. Further details on the border crossing initiative are expected within weeks.
• $448 Million in new funding over the next 5 years to accelerate projects to rehabilitate bridges that are part of the provincial highway network
• $927 Million in 2008-09 in the Southern Ontario Highways Program
• $557 Million in the Northern Ontario Highways Program

Other
• proposed legislation that would ban processed trans fats from food and beverages sold in school cafeterias and removing unhealthy food and beverages from school vending machines. The legislation would be supported by $10 Million annually in a childhood obesity strategy to encourage children to eat healthy and be physically active
• a commitment to maintain previously announced increases to minimum wage (and to not accelerate the rate of increases)

The ORHMA is pleased that the government has accepted a number of recommendations submitted by the association. The ORHMA would like to thank all association members and Provincial and Regional Directors for providing advice over the past year which have assisted in the development of the ORHMA 2008 Pre-Budget submission. To view the ORHMA 2008 Pre-Budget submission please click here.

To view Ministry of Finance budget documents please visit www.fin.gov.on.ca




ORHMA Presents 2008
Pre-Budget Recommendations

2008 Prebudget Recommendations

2007 Provincial Budget Highlights
2007 Provincial Budget Highlights


ORHMA Response to 2007 Provincial Budget:
Continued Minimum Wage Increases Threaten
Sustainability of Industry



ORHMA Presents 2007
Pre-BudgetRecommendations

2007 Pre-Budget Recommendations PDF document



Ontario Health Care Premiums
Ontario Health Care Premiums were introduced by the Government in the 2004 Provincial Budget, and the premiums came into effect on July 1, 2004. The Health Care Premiums will be implemented through the Income Tax Act and administered under the existing Tax Collection Agreement between Ontario and the federal government.

To ensure that employers do not incur added costs to change their payroll systems, the premium would be included on pay stubs as a component of the income tax withheld.

Ontario Health Premiums  
Taxable Income
Fully Implemented
Up to $20,000
$0
$20,000 - $36,000
$300
$36,000 - $48,000
$450
$48,000 - $72,000
$600
$72,000 - $200,000
$750
more than $200,000
$900


Ontario Health Care Premium -
Letter to Minister of Finance December 2006
PDF document

Minister of Finance responds to ORHMA (January 10, 2005) PDF document

Letter to Minister of Finance (November 9, 2004) PDF document

$4 Meal Tax
In preparation for its inaugural provincial budget the Minister of Finance released a discussion paper regarding proposals to be included in the budget. Included in the list of recommendations was the elimination of the retail sales tax exemption on meals under $4. The ORHMA and its members worked together to raise the public profile of this item, and after only one week of opposition from industry and the public, the government announced their decision to protect the retail sales tax exemption for meals under $4.

•Foodservice operators applaud Premier McGuinty's decision to take meal tax off the menu (April 20, 2004) page 1 PDF document

•100,000 consumers...and counting...say "NO" to Ontario's 8% meal tax proposal (April 19, 2004) page 1, page 2 PDF document

• Strong opposition brewing against 8% tax on meals (April 14, 2004)
page 1, page 2 PDF document


Tax Tips for Small Businesses
Link: Ontario Ministry of Finance, Small Business Guide. This booklet will guide you through various aspects of Retail Sales Tax, Corporations Tax and Employer Health Tax.
www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_24414_1.html
(Updated March, 2008)



 

 



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© 2008, ONTARIO RESTAURANT HOTEL & MOTEL ASSOCIATION
2600 Skymark Avenue, Ste 8-201, Mississauga, ON, L4W 5B2

We would like to thank Starwood Hotels & Resorts and the California Cling Peach Board for providing the photography used on this page

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