OTTAWA, June 29 /CNW Telbec/ - The Chemistry Industry Association of Canada welcomes the introduction of Ontario's harmonized sales tax (HST).
As of July 1, a 13 per cent HST will replace the province's 8 per cent provincial sales tax (PST) and the 5 per cent federal goods and services tax (GST).
"The HST is crucial to both the short-term recovery and the long-term prosperity of Ontario's manufacturing sector," says Richard Paton, President and CEO of the Chemistry Industry Association of Canada. "This was a much-needed first step to help make Ontario manufacturers more competitive, to encourage investment and innovation, and to safeguard Ontario manufacturing jobs."
While some Ontarians may find it difficult to see value in the government's decision to apply the HST to services that were previously PST-exempt, the benefit the HST will have for the overall economy should not be overlooked. The HST will make it less costly to manufacture goods in Ontario, which will encourage more business investment and innovation, faster economic growth, more jobs, higher productivity, and more sought-after exports. It will also place Ontario manufacturers on an equal footing with other jurisdictions with similar tax policies - including five Canadian provinces and 130 countries worldwide. Economists estimate that Ontario will see $47 billion in increased capital investment as a result of the HST, as well as the creation of 590,000 new jobs.
As the voice of the chemistry sector, the third largest manufacturing sector in Ontario, the Chemistry Industry Association of Canada is one of a coalition of industry groups that strongly supports Ontario's implementation of the HST. The Chemistry Industry Association of Canada looks forward to working with the Ontario government on future policies to further secure the viability and competitiveness of the province's manufacturing sector.
SOURCE Chemistry Industry Association of Canada
For further information: For further information: Michael Bourque, Vice-President, External Relations, Chemistry Industry Association of Canada, (613) 237-6215 x 225; Sarah Mayes, Manager, Public Affairs, Chemistry Industry Association of Canada, (613) 237-6215 x 239