TORONTO, Dec. 13 /CNW/ - Today's announcement by the provincial
government to move quickly on the much aligned corporate capital tax for
Ontario's most beleaguered sectors, will bring significant relief to some key
Ontario business sectors.
The 2007 Ontario Economic Update and Fiscal Review acknowledged the
serious challenges facing certain sectors of the economy including
manufacturing and resource. In a welcome move, the government has announced
the elimination of the corporate capital tax for those sectors as of
January 1, 2008. All businesses will benefit from a 21% rate reduction of the
corporate capital tax, retroactive to January 1, 2007.
"Quite frankly, this profit-insensitive tax should have been abolished
long ago," explains Len Crispino, President & CEO of the Ontario Chamber of
Commerce. "With today's announcement manufacturing and resource sectors will
get significant relief. We hope it will help these troubled sectors weather
the current economic storm."
In addition to consistently advocating for the elimination of the capital
tax, the OCC has called for comprehensive tax reform. This reform would
include lowering the high business property tax, accelerating depreciation for
investments in new capital and productivity enhancing technologies, upgrading
the provincial sales tax to a value-added-tax, and considering reducing the
corporate income tax rates.
The OCC also welcomed the following measures contained in today's
- The increased deduction threshold for small business;
- Funding for infrastructure improvements, specifically Ontario's
commitment to fund its share of the costs associated with the new
access road to the Detroit River International Crossing;
- The investments in skills development and re-employment of laid-off
"Today's targeted announcements provide some immediate measures to
stimulate the economy in Ontario, and to help the sectors most impacted by the
challenges facing our economy," adds Crispino. "While some of these measures
are short-term, it's our hope that they will help these industries while
long-term solutions can be identified."
The OCC represents over 57,000 businesses through 160 local Chambers of
Commerce and Boards of Trade, and has been Ontario's business advocate since
1911. Its advocacy and policy initiatives focus on six areas key to the
economic well-being of the province: health; education; energy; finance &
taxation; transportation & infrastructure; and border issues.
For further information:
For further information: Amy Terrill, Director Media Relations and
Communications, Ontario Chamber of Commerce, W: (416) 482-5222, ext. 241, C: