Ontario budget praised for tax cuts, road spending

TORONTO (May 8, 2000) — The Ontario Trucking Association last week praised the provincial budget, a balanced budget that will eliminate the 8% sales tax on warranty repairs while boosting spending on roads.

“A balanced budget, plus the combined tax cuts and infrastructure investment commitments contained in this budget represent a landmark achievement,” says OTA president David Bradley.

OTA also hailed the provincial government’s decision to phase out the 5% retail sales tax on automobile insurance premiums by 1 percentage point per year (starting May 3) until it is fully eliminated by 2004. The provincial sales tax on warranty repairs and replacements will be phased out by 2004 (it was cut to 6% starting last week).

In his budget speech, Finance Minister Ernie Eaves said he favored the cut in the sales taxes over reductions in fuel taxes in order to ensure that benefits go directly to taxpayers.

The decision is seen as a victory for the OTA, which has campaigned hard against both taxes, imposed simultaneously by the NDP government in the 1991 Ontario budget. The association said the taxes amount to a tax on safety.

In addition, Ontario’s highway infrastructure was given a significant boost by a record commitment of $1 billion for 2000-01. In each of the last three years, the provincial government has established a new highway infrastructure investment record.